The MLI`s position refers to decisions and options taken by a signatory or party to the MLI and made available to the depositary on the listed tax treaties and reservations and notifications of the optional provisions chosen, as well as on the existing provisions of the convention. With regard to artificial avoidance through commission agreements and similar strategies (Article 12), Spain made no reservations, specifically mentioning the provisions of its 88 covered contracts that need to be amended; If this is in line with the position of the other signatory states, additional tools will be made available to the tax authorities to combat these arrangements. And with regard to exemptions for certain activities (Article 13), Spain has chosen to apply Option A of Article 13(1), which allows it to maintain the exemptions for the activities described in the existing provisions, but requires that these activities be carried out in preparation or in the alternative. For the tax treaties concerned, this means in practice that activities that are not considered a permanent establishment are significantly restricted. Nor has Spain made a reservation to Article 15 of the MLI, which sets out the conditions under which, on the basis of the concept of „control“, presumed in certain cases, a person is considered to be „closely related“ to an entity within the meaning of Articles 12, 13 and 14. Jurisdictions that sign the MLI must indicate to which of their tax treaties the MLI is to be applied and amended. The tax treaties covered by the MLI are called covered tax agreements (ATAs). Article 2(1)(a) provides that a convention relating to the tax concerned refers to a convention for the avoidance of double taxation with regard to taxes on income (whether or not other taxes are also covered), 1. An covered tax treaty is amended to include the following wording: „aims to eliminate double taxation in respect of taxes covered by this Agreement without creating opportunities for non-taxation or tax reduction through fiscal evasion or avoidance (including through arrangements to purchase agreements to facilitate the provisions of this Agreement for the indirect benefit of residents of the European Union). third-country nationals),`. At the time of signature of the Agreement, a signatory must submit to the Secretary-General of the OECD (the Depositary) a provisional list of DTAs that it wishes to amend or supplement using the MI (Covered Tax Treaties, ATCs for short) and the provisional provisions of the MLI.
The provisional list may be amended until confirmed on the date of ratification by the MI. That is, the date of deposit of ratification of the instrument, acceptance or approval by the signatory of the depositary. (ii) in respect of which each of those Parties has notified the OECD Depositary, in accordance with Article 29(1) of the Convention, listing the Convention and any amendment or instrument accompanying it as an agreement which it wishes to include in the Convention. As a minimum standard, Article 6 of the MLI invites parties to include a preamble in the tax treaties concerned to emphasize their objective of eliminating double taxation without creating opportunities for non-taxation or tax reduction through tax evasion or avoidance. Among the three alternatives envisaged for the implementation of this provision, Spain has chosen to apply the extended version of the text of the preamble, which expresses the willingness of the parties to strengthen their economic relations and cooperate in tax matters, but has reserved the right not to include the text of the preamble in its agreements with Mexico and Romania. The Multilateral Tax Treaty Instrument Matching to Prevent BEPS Matching (MLI) database contains projections of how the MLI amends a particular tax treaty under the MLI`s jurisdiction by matching information from the positions of MLI signatories. Ratification document of the 1991 Income and Capital Tax Convention deposited on 22 September 2020. . The Organisation for Economic Co-operation and Development (OECD) has published an opinion approved by the Conference of the Parties to the Multilateral Instrument (MI)* containing a set of guidelines to clarify issues of interpretation and implementation of the MI and to resolve situations where there are inconsistent provisions in a tax treaty on income and the MLI. .
Bosnia and Herzegovina – China, People`s Republic. In June 2018, 4 other signatories, New Zealand, Serbia, Sweden and the United Kingdom, deposited the instrument of ratification with the OECD VERWAHRer on 27 June, 5 June, 22 June and 29 June respectively. The Convention is expected to enter into force for these 4 treaty territories on the first day of the month following the expiration of a period of 3 calendar months beginning on the date of deposit of the instrument of ratification on 1 October 2018. In November 2016, more than 100 countries and territories concluded negotiations on the Multilateral Convention on the Implementation of Measures Relating to the Tax Convention for the Prevention of Profit Erosion and Profit Shifting („Multilateral Instrument“ or „MLI“), which is rapidly implementing a number of tax convention measures to update international tax rules and reduce the risk of tax evasion by Multinationals. should be. The MLI already covers 95 jurisdictions and entered into force on 1 July 2018. Signatories include jurisdictions from all continents, and all stages of development and other jurisdictions are also actively working towards signing. . Income Tax Convention and Final Protocol of 2014 (Spanish text). . We are preparing a consolidated text for the majority of Australian tax treaties amended by the MI. If we have published a synthesized text, we can see it in the table below.
Australia has adopted the TPP in Article 7, including the discretion not to apply it in certain circumstances. Australia has not accepted the S-LOB. . This tool is a preliminary (beta) version that will be improved over time. The OECD welcomes comments and suggestions from the public on the development of improved versions of the MI matching database. . Based on the current positions or jurisdictions of the MI that have not signed the MI, contracts not amended by the MI include:. . . This formulation will undoubtedly lead to much debate on the interpretation in the application of tax treaties. . Australia has adopted Article 14, but will maintain existing bilateral rules providing for a permanent establishment for offshore activities in the field of natural resources.
Bosnia and Herzegovina: MI Reservations and Communications. . The final position of the Kingdom of Spain differs slightly from the provisional reservations and communications published on the website of the Spanish Ministry of Finance in November 2019. Since Spain`s position under the MLI may affect 88 of its tax treaties (provided that it is ultimately adopted and corresponds to that of the other signatory States), its options and reservations deserve to be taken into account when filing the MLI. This analysis is becoming increasingly important as it is not yet certain that the Spanish tax authorities will prepare legally binding consolidated versions of the Treaties (as amended by the MI). . Panel members prepared translations of mi into Chinese, German, Greek, German, Italian, Japanese, Portuguese, Serbian, Spanish and Swedish. . Australia adopted article 8 without reservation.
. These measures were developed as part of the OECD/G20 Base Erosion and Profit Shifting (BEPS) project. . Jurisdictions will be able to tax capital gains realized by foreign residents arising from the sale of shares or other shares of „land-rich“ companies (where the underlying property is located in that country) if the company was land-rich at any time within 365 days prior to the sale. . . . Each country is required to notify its provisional rulings (referred to as the „MLI position“ of that jurisdiction) to the OECD Secretariat at the time of signature (of the MLI) and to confirm them at the time of ratification.
The MLI positions of the jurisdictions are available on the OECD website (PDF 73KB)A file is downloaded from this link. . As a separate but related note, more sophisticated examples of opt-in provisions can be found in Article 7(4), (6) and (7) – Prevention of breach of contract. . . .