IBX-Jakarta. Tunisia deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS Convention), which now covers around 1 850 bilateral tax treaties, underlining its strong commitment to prevent the abuse of tax treaties and base erosion and profit shifting (BEPS) by multinational enterprises. The BEPS Convention will enter into force on 1 November 2023 for Tunisia.
On 1 August 2023, around 1 200 treaties concluded among the 82 jurisdictions which have ratified, accepted or approved the BEPS Convention have already been modified by the BEPS Convention. Around 650 additional treaties will be modified once the BEPS Convention will have been ratified by all Signatories.
Back to the past, in November 2016, over 100 jurisdictions concluded negotiations on the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“Multilateral Instrument” or “BEPS MLI“) that swiftly implements a series of tax treaty measures to update international tax rules and lessen the opportunity for tax avoidance by multinational enterprises. The first signing ceremony for the BEPS MLI was held on 7 June 2017 and it entered into force on 1 July 2018. To date, 100 jurisdictions have joined the BEPS MLI, out of which 82 jurisdictions have ratified, accepted, or approved the BEPS MLI, and it covers around 1850 bilateral tax treaties. Signatories include jurisdictions from all continents and all levels of development and other jurisdictions are also actively working towards signature.
The BEPS MLI offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the OECD/G20 BEPS Project into bilateral tax treaties worldwide. It also implements agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaty policies.
Source: Tunisia deposits its instrument for the ratification of the Multilateral BEPS Convention – OECD, Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS – OECD
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