The Maltese government has ratified the OECD’s multilateral convention (MLI) to counter base erosion and profit shifting (BEPS). A notice to this effect has been published in Legal Notice 142 of 2018 in the Maltese Government Gazette.

The MLI has been negotiated by over 100 countries and jurisdictions under a mandate from the G20 Finance Ministers and Central Bank Governors, modifying the existing bilateral tax treaties to implement the tax treaty measures of the OECD/G20 BEPS project swiftly. These measures include provisions with regards to the hybrid mismatch arrangements, treaty abuse, permanent establishments and the resolution of treaty disputes.

The MLI enters into force on July 1, 2018 and the amendments introduced through the MLI will have effect for existing tax treaties from 2019.

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