Ireland’s Double Tax Agreements to incorporate BEPS Multilateral Instrument from 1 May

Feb 04, 2019

Last week the Department of Finance announced that Ireland deposited with the OECD its Instrument of Ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to prevent BEPS (MLI). The MLI will come into effect in respect of Ireland’s bilateral tax treaties on 1 May 2019 and covers 71 out of Ireland’s 74 Double Tax Treaties. 

 

The OECD Multilateral Instrument provides a mechanism to allow countries to transpose BEPS recommendations into existing double tax treaties while providing for options in certain areas. For a MLI measure to take effect it is necessary that the counterparty treaty jurisdiction has also ratified the MLI.  The USA has not signed up to the MLI to date (see the list of current MLI signatories).  Ireland’s Double Tax Treaties with the Netherlands, Germany and Switzerland are not covered in the MLI lodged by Ireland last week.

 

Part 5 of Schedule 24A to Principal Act was amended in FA 2018 to reflect the MLI in Irish domestic legislation. See a 2017 Accountancy Ireland article for a summary of the MLI.  The Department of Finance also released a Technical Briefing Note in 2017 when Ireland first signed up to implementing the MLI.