Thursday, May 3, 2018
Malta has become the latest country to ratify the OECD's multilateral convention to counter base erosion and profit shifting (BEPS).
A notice was published in Legal Notice 142 of 2018 in the territory's Official Gazette.
The Convention, negotiated by more than 100 countries and jurisdictions under a mandate from G20 Finance Ministers and Central Bank Governors, modifies existing bilateral tax treaties to swiftly implement the tax treaty measures developed in the course of the OECD/G20 BEPS Project.
Treaty measures introduced by the Convention include those on hybrid mismatch arrangements, treaty abuse, and permanent establishments. The Convention also strengthens provisions to resolve treaty disputes.
The Convention enters into force on July 1, 2018. Other countries who have ratified the Convention include Austria, the Isle of Man, Jersey, Slovakia, Poland, and the United Arab Emirates. The amendments introduced through the Convention will have effect for existing tax treaties from 2019.