New Zealand and Sweden deposited their ratification certificates on 27th June and 22nd June 2018, respectively for the multilateral agreement on the implementation of tax-relevant measures to prevent erosion and profit shifting (MLI). The MLI will enter into force for both countries on 1st October 2018, but its entry into force for the respective covered agreements (tax treaties) will depend on the ratification of the MLI by the counter party to a particular covered agreement.
Generally, for a particular covered agreement, the MLI will enter into force on the first day of the month following a period of three months after both parties to the covered agreement have deposited their ratification instrument. After entry into force, the provisions of the MLI will normally apply from 1st January of the year following its entry into force for withholding tax, for a covered agreement, and for all other taxes for tax periods that occur on or after the expiration of 6 months after the date of entry into force.
