Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting
Publication date:2 016
Publication type:Policy Document
Publication URL:Go to resource
Negotiation stage:1. Legal & Policy Framework
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Convention) is one of the outcomes of the OECD/G20 Project to tackle Base Erosion and Profit Shifting, i.e. tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in little or no overall corporate tax being paid.
The Convention offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the OECD/G20 Project to tack Base Erosion and Profit Shifting into bilateral tax treaties worldwide. The Convention modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also implements agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaty policies.