JERSEY deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting with the OECD. Subsequently, on 20 December 2017, Curaçao has joined the multilateral convention, following a communication from the Kingdom of the Netherlands to the OECD. A provisional list of reservations and notifications for Curaçao has been provided and a definitive version will be deposited with the OECD at the time of the deposit of the instrument of ratification of the Kingdom of the Netherlands.

This underlines the strong commitment of Jersey and Curaçao to international tax standards to prevent the abuse of tax treaties and base erosion and profit shifting (BEPS) by multinational enterprises.

The multilateral convention offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the OECD/G20 BEPS Project into bilateral tax treaties worldwide. The multilateral convention modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. Tax treaty-related measures that may be implemented through the multilateral convention include those on hybrid mismatch arrangements, treaty abuse, permanent establishment, and mutual agreement procedures, including agreed minimum standards to counter treaty abuse and to improve dispute resolution and an optional provision on mandatory binding arbitration.

Now covering 72 jurisdictions and over 1,100 treaties, the Convention is expected to be signed by additional governments in the near future. The OECD is organising a second signing ceremony for the multilateral convention that will take place at the OECD Headquarters, in the margins of the Inclusive Framework on BEPS meeting, on Wednesday 24 January.

The multilateral convention was adopted by an ad hoc Group of over 100 jurisdictions working on an equal footing on 24 November 2016 and already covers 72 jurisdictions. The Republic of Austria became the first jurisdiction to deposit its instrument of ratification for the multilateral convention on 22 September 2017, the Isle of Man, the second, on 19 October 2017, and Jersey the third on 15 December 2017. The multilateral convention will enter into force three calendar months after the date of deposit of the fifth instrument of ratification, acceptance or approval.