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ARTICLE · 19 MARCH 2019

Multilateral Convention Ratified By The Netherlands

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On March 5, 2019, the Upper House (Eerste Kamer) of the Dutch parliament approved the Multilateral Convention to implement tax treaty-related measures to combat base erosion and profit shifting.

NetherlandsTax

On March 5, 2019, the Upper House (Eerste Kamer) of the Dutch parliament approved the Multilateral Convention to implement tax treaty-related measures to combat base erosion and profit shifting (also known as the Multilateral Instrument or MLI). Therefore, the ratification process is finalized and the Netherlands must deposit the ratification instrument with the OECD. The MLI may affect existing Dutch tax treaties and its provisions will enter into force as of 1 January 2020 if the Netherlands deposits the ratification instrument before April 1, 2019.

Positions of the Netherlands

The MLI is a multilateral tax convention designed by the OECD to combat base erosion and profit shifting (BEPS) by multinational enterprises to swiftly implement tax treaty-related BEPS measures and will be applied alongside the existing bilateral tax treaties and effectively changes these treaties.

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