Cyprus - along other 67 countries and jurisdictions - formally
signed the Multilateral Convention to Implement Tax Treaty Related
Measures to Prevent Base Erosion and Profit Shifting
("MLI") on 7 June 2017 in Paris. The MLI will implement a
series of tax treaty measures to update the existing network of
bilateral tax treaties and reduce opportunities for tax avoidance
by multinational enterprises. Another 8 counties or jurisdictions
have expressed their intent to sign the MLI as it remains open for
additional signatories.
The first modifications to bilateral tax treaties are expected
to enter into effect in early 2018.
It is important to note that, according to OECD representatives,
the MLI will not be amending the bilateral tax treaties by changing
or adding particular words or phrases, but will rather be used in
conjunction and will modify existing treaties to which it has
application.
