Recently, the Danish Ministry of Taxation is inviting public comments on a draft legislative proposal to ratify the OECD’s Multilateral Instrument (MLI) to implement tax treaty-related measures to tackle base erosion and profit shifting. The draft law includes the provisions for the ratification of the MLI, as well as the final list of covered agreements (tax treaties) and the options and reservation selected by Denmark.

The BEPS MLI, negotiated by over 100 countries and jurisdictions, updates the existing network of tax treaties and reduces opportunities for MNE tax avoidance. Denmark signed the BEPS MLI in June 2017. The legislation is intended to enter into force in July 2019.