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Burkina Faso Ratifies The BEPS MLI

Tuesday, November 10, 2020

African state Burkina Faso has ratified the BEPS multilateral instrument, to make changes to its double tax agreements to counter tax base erosion and profit shifting (BEPS).

The MLI was developed through negotiations involving more than 100 countries and jurisdictions. The MLI enables countries to modify their existing tax treaties to include measures developed under the OECD/G20 BEPS project without having to individually renegotiate these treaties.

The instrument will implement minimum standards to counter treaty abuse, prevent the artificial avoidance of permanent establishment status, neutralize the effects of hybrid mismatch arrangements, and improve dispute resolution mechanisms.

It will enter into force for the treaty between Burkina Faso and France from February 1, 2021. It will also amend the country's double tax agreements with Morocco and Tunisia when the BEPS MLI enters into force also for those countries and providing also they select their agreement with Burkina Faso as a "covered agreement".