Singapore signs off on BEPS Convention

June 23, 2017

SINGAPORE - Singapore has joined 67 other countries in becoming a signatory to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS). The Convention enables participating countries to modify their existing double tax agreements in order to implement BEPS measures.

The Convention (MLI) provides a framework for signatories to implement the BEPS minimum standards and other tax treaty measures which countries can selectively adopt into their DTAs.

In a Client Alert, lawyers Baker McKenzie say Singapore has provisionally adopted provisions relating to treaty abuse, dispute resolution and mandatory binding arbitration.

It has also, however, reserved the right not to apply to its DTAs provisions relating to hybrid mismatches, as well as the majority of the provisions relating to Permanent Establishment status avoidance, BM says.

“Upon ratification of the MLI, Singapore’s DTAs will be amended insofar as its treaty partners are also MLI signatories and have adopted the same positions on the MLI's provisions,” the Alert adds.  www.bakermckenzie.com (ATI).