Switzerland signed the BEPS Multilateral Convention (the MLI) in Paris on 7 June 2017. In total, 68 jurisdictions signed on that day. Moreover, nine further jurisdictions announced their intent to join.
The background is straightforward. In October 2015, the G20 endorsed the final BEPS package. As a result, more than 100 countries agreed that several measures required changes to their existing double-tax treaties. Therefore, they built a single convention to fold those outcomes into their bilateral treaties. Finally, the MLI text appeared on 24 October 2016.
How the MLI works
The MLI works alongside existing treaties. It does not rewrite them directly. Instead, each country selects which treaties it wants to modify. Once both countries notify the same treaty, that treaty becomes a Covered Tax Agreement. In addition, more than 1,100 treaties already qualify for matching.
Further information: OECD BEPS Project
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