The OECD announced on 22 March 2018 that the multilateral monvention to implement tax treaty related measures to prevent base erosion and profit shifting (MLI) will first enter into force on 1 July 2018, following Slovenia’s deposit of the fifth instrument of ratification of the MLI on 22 March.
Previously the Ratification instruments have been deposited with the OECD by Austria (22 September 2017), the Isle of Man (19 October 2017), Jersey (15 December 2017) and Poland (23 January 2018). Consequently Slovenia is the fifth jurisdiction to deposit its instrument of ratification.
The Convention is the first multilateral treaty allowing jurisdictions to transpose results from the OECD/G20 BEPS Project into their existing bilateral tax treaties, transforming the way tax treaties are modified. The Convention has been designed to strengthen existing tax treaties concluded among its parties without the need for burdensome and time-consuming bilateral renegotiations.
