THE Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS will enter into force on 1 July 2018, marking a significant step in international efforts to update the existing network of bilateral tax treaties and reduce opportunities for tax avoidance by multinational enterprises.

The entry into force of the Convention, just one year after the first signature, underlines the strong political commitment to a multilateral approach to fighting base erosion and profit shifting (BEPS) by multinational enterprises. The entry into force follows from the deposit of the fifth instrument of ratification by Slovenia on 22 March 2018. Earlier, the Republic of Austria (22 September 2017), the Isle of Man (19 October 2017), Jersey (15 December 2017), and Poland (23 January 2018) deposited their instruments with the OECD.