OECD releases guidance on Multilateral Instrument

Nov 19, 2018

The OECD recently released new Guidance for the Development of Synthesised Texts dealing with the modifications to tax treaties resulting from the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (“MLI”) which entered into force on 1 July 2018.  A Secretariat note was also released to clarify the “entry into effect rules” for tax treaties of jurisdictions that deposited their ratification instruments last September.

The Guidance is designed for use by governments to provide an insight into the impact of the Convention on existing treaties. According to the OECD’s press release, Synthesised Texts also provide comprehensive information to taxpayers, auditors, advisors and other users about when the modifications will have effect in each jurisdiction.  Ireland’s double tax treaties are expected to be updated to reflect the MLI from 1 January 2020.