- The MLI is intended to introduce the tax treaty related measures, which are part of the measures developed under the BEPS project, into the existing tax treaties between the Parties to the MLI.
- The MLI enables the Parties to implement the tax treaty related measures to prevent BEPS with respect to a large number of their existing tax treaties at the same time and in an efficient manner.
- Measures to prevent BEPS introduced into the existing tax treaties by the MLI consist of (i) measures to prevent tax avoidance conducted through abuse of tax treaties and (ii) measures to eliminate uncertainty for taxpayers such as elimination of double taxation.
- Each of the Parties to the MLI may choose all or part of its existing tax treaties as to be covered by the MLI and under specified conditions all or part of provisions of the MLI regarding the tax treaty related measures to prevent BEPS as to be applicable to their existing tax treaties.
of an ad hoc Group for the development of a multilateral instrument.
- November 24, 2016：The text of the MLI was adopted by the members of the ad hoc Group.
- June 7, 2017：67 jurisdictions including Japan signed the MLI at the signing ceremony held at Paris.
- May 18, 2018 ：The MLI was approved at the 196th session of the Diet in Japan.
January 1, 2019 for Japan.
Measures to prevent BEPS introduced into the existing tax treaties by the MLI consist of (i) measures to prevent tax avoidance conducted through abuse of tax treaties and (ii) measures to eliminate uncertainty for taxpayers such as elimination of double taxation, which include the tax treaty related measures to prevent BEPS recommended by the final reports of the following Actions of the BEPS project.
Each of the Parties to the MLI may choose all or part of its existing tax treaties as to be covered by the MLI.
The MLI will apply only to a tax treaty all of the parties to which have chosen that tax treaty as to be covered by the MLI, and will not apply to a tax treaty either party to which is not the Party to the MLI nor has chosen that tax treaty as such.
Each of the Parties to the MLI may choose under specified conditions all or part of provisions of the MLI regarding the tax treaty related measures to prevent BEPS as to be applicable to their existing tax treaties.
Provisions of the MLI, in principle, will apply only to tax treaties all of the parties to which have chosen such provisions as to be applicable to their tax treaties, and will not apply to tax treaties either party to which has not chosen those provisions as such.
The provisions of the MLI chosen to be applied by a Party to the MLI, in principle, will apply to all of its tax treaties covered by the MLI, and a Party cannot choose to or not to apply such provisions only to its particular tax treaties.
The provisions of the MLI regarding the tax treaty related measures to prevent BEPS will, where applicable, apply in place of the similar provisions of the existing tax treaties or in addition to the provisions thereof in the absence of such similar provisions.
Each of the Parties to the MLI must notify the Depositary of the MLI (the Secretary-General of the OECD) of (i) a list of existing tax treaties to be covered by the MLI and (ii) a list of provisions of the MLI regarding the tax treaty related measures to prevent BEPS to be applicable to its tax treaties at time of either of the signature to the MLI or of the ratification, acceptance or approval of the MLI. A Party to the MLI which does not make such notification at the time of the signature to the MLI must submit provisional lists of them at that time.
The Depositary will make public the notifications and submissions from each of the Parties to the MLI.
(*1)The underlined 23 jurisdictions have deposited the instruments of ratification, acceptance, or approval of the MLI.
(*2)China has notified that the tax treaties concluded by Hong Kong are covered by the MLI.
(*3)The Netherlands has notified that the tax treaties concluded by Curaçao are covered by the MLI.
The followings are the outline of the contents of the list regarding Japan's choices of application of the MLI.
(＊) The underlined 12 jurisdictions have deposited the instruments of ratification, acceptance, or approval of the MLI as of March 29, 2019.
The MLI applies to an existing tax treaty where both parties to that tax treaty have chosen to apply the MLI to it and where the MLI has entered into force for those parties.
The provisions of the MLI applicable to an existing tax treaty and the timing of entry into effect of the MLI for it are determined depending on the choices of each of the parties to that tax treaty.
For details of the application of the MLI to the tax treaties between Japan and the jurisdictions which have already deposited their instruments of ratification, acceptance or approval of the MLI, see the table below.
MLI applicable to that tax treaty and the entry into effect of the MLI for that tax treaty.
treaty (as it may be amended by amending protocols) and the provisions of the MLI applicable to that tax treaty.
to a tax treaty and has no legal value.
(*) A Synthesized Text was partially modified.