Curacao Signs BEPS Multilateral Instrument
by Mike Godfrey, Lowtax.net, Washington
02 January, 2018
Curacao, the low-tax Caribbean territory, has become the latest jurisdiction to sign the BEPS multilateral instrument (MLI) to revise tax treaties to counter base erosion and profit shifting (BEPS).
Curacao joins 71 other jurisdictions who have committed to closing gaps in existing international tax rules by transposing recommendations from the OECD/G20 BEPS project into bilateral tax treaties worldwide.
The MLI modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation by implementing agreed minimum standards to counter treaty abuse. It also improves dispute resolution mechanisms and provides flexibility to accommodate specific tax treaty policies.
At the time of signing Curacao also listed its reservations to the MLI provisions. Details of such are available on the OECD's website.
So far three jurisdictions - Jersey, Austria, and the Isle of Man - have ratified the MLI. Two further jurisdictions (a total of five) must ratify the instrument before it can come into force.
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