OECD Multilateral Instrument status tracker Current as of 1 June 2019 Introduction 1 Status of the MLI as at 1 June 2019 2 World heat map 2 Europe 3 Asia-Pacific and the Middle East 4 Americas 5 Africa 6 Matrices of CTAs 7 Appendices 15 Contacts 18 OECD Multilateral Instrument status tracker | Introduction Introduction Scope This document is a status tracker for the implementation • OECD BEPS Project – The BEPS project supported by of the Multilateral Convention to Implement Tax the G20 now includes over 100 countries. Countries Treaty Related Measures to Prevent Base Erosion and are able to take part in the ongoing work if they Profit Shifting generally referred to as the Multilateral commit to implementation of the agreed minimum Instrument or MLI. This MLI status tracker is intended to standards. consolidate general information on the application of the • OECD Model Tax Convention – The OECD Model treaty. The tracker has been reviewed and updated as of Tax Convention on Income and on Capital is the model 1 June 2019. traditionally used by developed economies when negotiating double tax conventions. As at 1 June 2019, 88 jurisdictions have signed the MLI, and 26 of those jurisdictions have also deposited their • Tax treaty – A tax convention between two instruments of ratification with the OECD. jurisdictions for the avoidance of double taxation with respect to taxes on income and on capital. Please note the following definitions used in the document: The MLI status tracker is intended to be a quick reference guide, and is not an exhaustive overview of all information relating to the MLI. It should not be relied • Base Erosion and Profit Shifting (BEPS) refers upon for making business decisions, and experienced to tax planning strategies that may be used to tax professionals should be consulted before taking any exploit gaps and mismatches in the tax rules of action. For more information regarding the application different countries to artificially shift profits to low or of the MLI in specific countries, and about Deloitte’s tax no-tax locations where there is little or no economic practice in those jurisdictions, please contact your usual activity. Deloitte tax adviser. • BEPS Action Plan – This plan, published by the OECD, includeds 15 actions to address BEPS in a The MLI status tracker will be updated when additional comprehensive manner. information becomes available; please check our website for the latest updates. 1 OECD Multilateral Instrument status tracker | Status of the MLI as at 1 June 2019 Status of the MLI as at 1 June 2019 World heat map Overall MLI status MLI status by regions (including the jurisdictions that intend to sign the MLI) 26 7 • 88 jurisdictions have signed the MLI 18 • 7 jurisdictions have expressed an intention to sign the MLI 7 1 62 25 14 11 12 1 3 3 Legend Europe Americas Asia-Pacific Africa and MLI jurisdiction, ratified the MLI, instrument of ratification has been Middle East deposited with the OECD MLI jurisdiction, MLI ratification pending Non-MLI jurisdiction, expressed intention to sign MLI Non-MLI jurisdiction • Consider whether choices each treaty partner has made in relation to MLI articles gives rise to a “match” • Consider entry into effect dates for specific articles • Asymmetrical entry into effect between treaty partners is possible 2 OECD Multilateral Instrument status tracker | Status of the MLI as at 1 June 2019 Europe heat map Seden Ieland Fnand Beum Noway Nethelans stona Russia Ise of Man Latvia Lithuana enak Iean Belaus UK oland uense eany Czeh Jese euc Ukane Soakia Lueourg Stzeland ustia unay Lehtensten oana ance Italy Mooa Sebia Legend uaia Maeona Monao 18 MLI jurisdiction, ratified the MLI, instrument of ratification has been deposited with OECD noa San otual Sain Mano Turkey 25 MLI jurisdiction, MLI ratification pending eee 1 Non-MLI jurisdiction, expressed its intention Malta Cyprus to sign MLI Albana Non-MLI jurisdiction Sovena Monteneo Coatia osna an ezeona • All EU member states have signed the MLI, as have 15 other • Although the MLI is effective in Sweden as from 2019, Sweden countries in Europe. still must complete its internal procedures before the MLI will be effective in its entirety. • 18 jurisdictions have ratified the MLI and deposited their instruments of ratification with the OECD (depicted in blue). These • Jersey and the Isle of Man do not have any matching covered tax jurisdictions have made their final choices with respect to adoption agreements (CTAs) with any of the above countries. of the MLI articles. • In 2020, MLI articles will be effective in Finland, Guernsey, Ireland, • In 2019, MLI articles are effective in Austria, France, Lithuania, Luxembourg, Malta, Monaco and the Netherlands. More European Poland, Serbia, Slovakia, Slovenia and the UK. For more information jurisdictions likely will be affected by the MLI, depending on the on the MLI articles that are effective as of 2019 in the above timing of the ratification process. countries, see pages 7-14. 3 OECD Multilateral Instrument status tracker | Status of the MLI as at 1 June 2019 Asia-Pacific and the Middle East heat map astan stan aahstan Monoa eaan eoa estan ena uenstan oth oea South oea Sa hna Leanon fhanstan Jaan Ia Ian Isae Joan astan ea ata Sau aa UAE Ina Mana on on S an etna een anaesh haan Laos hutan aoa hnes une aussaa S Lana Maasa uat Snaoe aua e unea Inonesa Legend 7 MLI jurisdiction, ratified the MLI, instrument of ratification has been deposited with OECD 14 MLI jurisdiction, MLI ratification pending 3 Non-MLI jurisdiction, expressed its intention to sign MLI Fiji Non-MLI jurisdiction ustaa e eaan • 21 jurisdictions in the Asia-Pacific (AP) and Middle East (ME) • In 2019, MLI articles are effective in Australia, Israel, Japan and New regions have signed the MLI. Zealand. For more information on the MLI articles that are effective as of 2019 in the above countries, see pages 7-14. • Seven jurisdictions have ratified the MLI and deposited their instruments of ratification with the OECD (depicted in blue). These • In 2020, MLI articles will be effective in Georgia, Singapore and jurisdictions have made their final choices with respect to adoption the UAE. of the MLI articles. • More jurisdictions in the AP and ME likely will be affected by the MLI as from 1 January 2020, depending on the timing of the ratification processes. 4 OECD Multilateral Instrument status tracker | Status of the MLI as at 1 June 2019 Americas heat map St Maaten uaao aaos eneuea uana Sunae ooa enh uana uao eu anaa a oa aaua he nte States entna uua ahaas Legend MLI jurisdiction, ratified the MLI, instrument Meo 1 ee ahaas of ratification has been deposited with OECD onan e MLI jurisdiction, MLI ratification pending 12 Jaaa ueto o onuas 0 Non-MLI jurisdiction, expressed its intention aaua to sign MLI uateaa Saao anaa Non-MLI jurisdiction osta a • 13 jurisdictions in the Americas region have signed the MLI. • Other jurisdictions can change their initial MLI positions before ratifying the MLI. • Only Curacao has ratified the MLI and deposited its instrument of ratification with the OECD. Curacao has made its final choices with • The MLI will not be effective in the Americas region in 2019. respect to adoption of the MLI articles. • The MLI will be effective in Curacao as from 2020. 5 OECD Multilateral Instrument status tracker | Status of the MLI as at 1 June 2019 Africa heat map unsa Mooo ea La t esten Sahaa Mautana Ma e tea ha oth Suan Senea aa una unea ssau out unea ea Soaa thoa Sea Leone Io hana oast enta fan South Suan Lea eu aeoon oo enn uatoa unea ana ena aon ono ana eoat Sehees eu of the ono uun Sao oe ne anana Legend ooos noa MLI jurisdiction, ratified the MLI, instrument 0 aa of ratification has been deposited with OECD Maa MLI jurisdiction, MLI ratification pending 11 ae Maaasa Non-MLI jurisdiction, expressed its intention Moaue 3 aa to sign MLI otsana Mautus Non-MLI jurisdiction Saan Lesotho South fa • 11 jurisdictions in the Africa region have signed the MLI, but none • The MLI will not be effective in the Africa region in 2019 of these jurisdictions have ratified the MLI and deposited their because none of the countries have ratified and deposited their instruments of ratification with the OECD. instruments of ratification with the OECD. • All 11 jurisdictions can change their initial MLI positions before • The Africa region could be affected by the MLI as from 2020, ratifying the MLI. depending on the timing of the ratification processes. 6 OECD Multilateral Instrument status tracker | Matrices of CTAs Matrices of CTAs MLI impact as at 1 January 2019 Note: • As at 1 January 2019, the MLI applies in the following 15 • Jersey and the Isle of Man have not listed tax treaties jurisdictions in Europe, Asia-Pacific and the Middle East with any of the other jurisdictions that have deposited since these countries ratified the MLI and deposited their instruments of ratification with the OECD by their instruments of ratification with the OECD by 1 1 October 2018 so there are no CTAs for these October 2018: Australia, Austria, France, Isle of Man, jurisdictions to be covered by the MLI articles as per 1 Israel, Japan, Jersey, Lithuania, New Zealand, Poland, January 2019. Serbia, Slovakia, Slovenia, Sweden and the UK. The • Curacao, Finland, Georgia, Guernsey, Ireland, MLI is not yet in effect in any countries in Africa or the Luxembourg, Malta, Monaco, Netherlands, Singapore Americas as at 1 January 2019 because no jurisdiction and the UAE are not included in the matrices because has ratified the MLI and deposited its instrument of the MLI articles, with the exception of dispute ratification with the OECD.