Multilateral Instrument (MLI)

The multilateral instrument (MLI) implements the treaty related anti-tax avoidance measures of the BEPS project in bilateral tax treaties.

A highly innovative aspect of the BEPS project, the MLI allows for the relatively rapid inclusion in existing bilateral tax treaties of measures against treaty shopping, artificial avoidance of the PE status and hybrid mismatches, as well as improvements of the dispute resolution mechanism. The MLI covers 87 jurisdictions, including the Netherlands, Belgium, Luxembourg and Switzerland, and will have a substantial impact on more than 1,500 existing bilateral tax treaties.