Netherlands Publishes Guidance On BEPS MLI

15/04/2020

On April 6, 2020, the Dutch Ministry of Finance published guidance material on the application of the BEPS Multilateral Instrument and its effect on Dutch tax treaties.

The MLI was developed through negotiations involving more than 100 countries and jurisdictions. The MLI enables countries to modify their existing tax treaties to include measures developed under the OECD/G20 BEPS project without having to individually renegotiate these treaties. The instrument will implement minimum standards to counter treaty abuse, prevent the artificial avoidance of permanent establishment status, neutralize the effects of hybrid mismatch arrangements, and improve dispute resolution mechanisms.

The new document provides a brief overview of the Multilateral Instrument, including background to the MLI, how the MLI works, and when the MLI applies.

Additionally, the document provides a list of the tax treaties to which the MLI applies, and from when these changes apply, as at April 1, 2020. This list will be updated quarterly.

Source: Pride Partners International