Multilateral Convention On Implementation Of BEPS Plan Signed

Introduction

On June 7 2017 Russia, alongside 68 other states and jurisdictions, signed the Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), which was developed to implement Action 15 of the BEPS Plan.

The convention contains provisions that are binding for each signatory. It also contains numerous optional provisions, the application of which with respect to a particular double tax treaty (DTT) is at the discretion of each party to the DTT.

Binding provisions

The provisions that are binding on all signatory countries (including Russia) include the following:

• DTTs should not be applied to parties that use DTTs for tax evasion.