Ratification Of Multilateral Instrument

On January 22 2020 the instrument of ratification of the Multilateral Convention to Implement Tax Treaty Related Matters (MLI), and the Cyprus position on the minimum standards of the MLI and explanatory statement, were published in the Official Gazette of the Republic.

The BEPS MLI is designed to allow countries to swiftly incorporate new tax treaty provisions in their existing bilateral tax treaties (in line with measures arising from the G20/OECD BEPS Project). The MLI does not operate in the same manner as an existing treaty protocol amendment – rather it 'complements' existing treaties and is to be read in conjunction with the treaty at hand. While the MLI provides flexibility on each state's sovereign right over the adoption of the MLI positions, some elements contained therein (inter alia the provisions on the prevention of treaty abuse and dispute resolution) are considered as OECD/G20 minimum standards for those jurisdictions participating in the BEPS