Malta ratifies the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting
The Secretariat of the Organisation for Economic Co-operation and Development formally acknowledged receipt of the instrument of ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, which was deposited by Malta on Tuesday together with the relevant list of reservations and notifications, following signature by Minister for Foreign Affairs and Trade Promotion Carmelo Abela.
Minister Abela stated that the ratification of this convention underlines the active role that Malta plays in the development and implementation of international standards in taxation, good governance, together with the government’s determination to effectively fight all types of abuse of tax systems.
The MLI has the objective of offering tangible solutions for governments to close the gaps in exist- ing international tax rules by transposing results from the OECD/G20 BEPS Project into bilateral tax treaties worldwide.
The MLI will modify the application of thousands of bilateral tax treaties concluded to eliminate double taxation, and implements the agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaty policies.