Brazil joins the OECD Multilateral Convention to Prevent Base Erosion and Profit Shifting

The Brazilian government signed today in Paris the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, also known as the Multilateral Instrument (MLI).

The MLI was developed by the OECD in 2016, following the  recommendations outlined in the Action 15-Final Report of the BEPS Project (Base Erosion and Profit Shifting), an initiative by the OECD and the G20.

This voluntary instrument is designed to modernize double taxation agreements (DTAs) worldwide. With this initiative, Brazil joins 105 other countries that have already signed the MLI.

Following ratification by the National Congress, the MLI will help modernize 26 double taxation agreements (DTAs) to which Brazil is a signatory, ensuring that these treaties achieve their objective of eliminating double taxation while preventing loopholes that could lead to non-taxation or reduced taxation through tax evasion or tax avoidance.