Multilateral instrument (MLI) from Turkish perspective

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The Organisation for Economic Co-operation and Development (OECD) released the text of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) under BEPS Action 15 (the MLI) on 24 November 2016 and this convention is opened for signature as of 31 December 2016 pursuant to Article 27 of the MLI, whereas the signing ceremony was held on 7 June 2017 in Paris. MLI was developed over the past year via negotiations involving more than 100 jurisdictions including OECD member countries, G20 countries and other developed and developing countries; and signed during and after the signing ceremony held in Paris by 71 countries including Turkey. In this regards, what is MLI, how is it perceived in Turkey and what kind of changes will it possibly cause within the multinational entities?

 

Below is a scheme displaying when the MLI provisions will be applicable[1]:

 


[1] http://www.oecd.org/tax/treaties/step-by-step-tool-on-the-application-of-the-MLI.pdf

 

 

 

Explanations in this article reflect the writer's personal view on the matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any responsibility in respect of the information and explanations in the article. Please be advised to first receive professional assistance from the related experts before initiating an application regarding a specific matter, since the legislation is changed frequently and is open to different interpretations.