Cyprus will sign the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting (MLI), Cyprus’s Ministry of Finance has announced.
The ministry said that Cyprus’s Council of Ministers on April 5 formally approved the signing of the multilateral instrument.
The MLI is designed to swiftly incorporate into countries’ existing tax treaties new measures designed to prevent tax avoidance by multinational corporations and to speed the resolution of tax disputes between multinationals and governments.
Slated to be signed in Paris on June 7, the MLI provisions reflect the OECD/G20 base erosion profit shifting (BEPS) plan minimum standards under Actions 6 and 14 and other BEPS tax treaty related output. The BEPS plan was endorsed by the G20 in November 2015.
MLI will sit on top of and modify existing tax treaties so, following the signing, countries will need to go to parliament only once to ratify many tax treaties, MNE Tax reports.
Cyprus was among about 100 countries that participated in drafting the MLI and its explanatory statements.