Today, Azerbaijan deposited its instrument of ratification of the BEPS Convention, underscoring its strong commitment to preventing tax treaty abuse, base erosion and profit shifting by multinational companies. The BEPS Treaty will enter into force for Azerbaijan on January 1, 2025.
To date, 86 jurisdictions have ratified, accepted or approved the BEPS Convention, resulting in more than 1,450 amendments to the Convention. If the BEPS Convention is ratified by all signatories, approximately 500 additional treaties will be amended.
The BEPS Treaty, negotiated by more than 100 countries and jurisdictions on behalf of G20 Finance Ministers and Central Bank Governors, is one of the most significant outcomes of the OECD/G20 BEPS Project. It is the world’s leading instrument for updating bilateral tax treaties and reducing opportunities for tax avoidance by multinational companies. The measures contained in the BEPS Treaty address treaty abuses, strategies to avoid the creation of “permanent establishments” and hybrid mismatch arrangements. The BEPS Convention also strengthens dispute resolution mechanisms, inter alia through the addition of an optional clause on mandatory binding arbitration, which has been adopted by 33 jurisdictions.
The text, explanatory text, background information, database, and positions of each signatory and party to the BEPS Convention are available at https://oe.cd/mli.
