The OECD has announced that on 11 January 2019, Belize signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). According to the provisional list of reservations and notifications, Belize intends to have the MLI cover 4 tax treaties, including its bilateral treaties Austria, Switzerland, and the UK and the multilateral treaty of the Member States of the Caribbean Community (CARICOM). For the MLI to become effective for a particular treaty, both parties to a treaty must have included the treaty as a covered agreement, and both must have completed the required procedures for the ratification of the MLI.
The OECD also announced that Monaco has deposited its ratification instrument for the BEPS MLI on 10 January 2019. Based on the date of deposit, the MLI will enter into force for Monaco on 1 May 2019, although its entry into force for Monaco’s covered agreements (tax treaties) will depend on the ratification of the MLI by the counterparty to a particular covered agreement.
In general, the MLI will enter into force for a particular covered agreement on the first day of the month following a three-month period after both parties to the covered agreement have deposited their ratification instrument. Once in force, the provisions of the MLI will generally apply for a covered agreement from 1 January of the year following its entry into force in respect of withholding taxes, and for all other taxes with respect to taxable periods beginning on or after the expiration of a 6-month period following the date of entry into force.
Click the following link for Monaco’s definitive list of reservations and notifications made upon deposit of the instrument of ratification.
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