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Morocco Commits To BEPS-Proof Its Tax Treaties

Friday, July 5, 2019

Morocco signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting –the BEPS Multilateral Instrument (BEPS MLI) – on June 25, 2019.

Signed by 89 jurisdictions, the MLI is the world's leading instrument for updating bilateral tax treaties to reduce opportunities for tax avoidance by multinational enterprises.

It includes minimum standard provisions to counter treaty abuse (BEPS Action 6), prevent the artificial avoidance of permanent establishment status (BEPS Action 7), neutralize the effects of hybrid mismatch arrangements (BEPS Action 2), and improve dispute resolution mechanisms (BEPS Action 14).

In March 2019, Morocco joined the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, committing the country to implementing these minimum standards and working towards the development of future measures to counter BEPS.