In October 2019, Mauritius has ratified the multilateral instrument (MLI) pursuant to the base erosion and profit shifting (BEPS) project. The MLI is the agreement that allows jurisdictions to amend their tax treaties to include tax treaty-related BEPS recommendations. Since Singapore adopted the MLI in 2019, the action by Mauritius may have implications for existing structures with payments between Singapore and Mauritius. <\/p>\n\n\n\n
Singapore has already ratified the MLI; thus, a tax agreement between Singapore and the other treaty partner jurisdiction would be amended by the MLI if both jurisdictions share the same position on the MLI provisions and both have deposited their instruments of ratification with the OECD.<\/p>\n\n\n\n
Singapore has also adopted the MLI article on \u201cpreventing treaty abuse\u201d \u2014 a general anti-abuse rule (commonly referred to as the \u201cprincipal purpose test\u201d).<\/p>\n\n\n\n
With Mauritius ratifying the MLI existing tax structures between the two countries that currently enjoy tax treaty benefits may be at risk of challenge under the \u201cprincipal purpose test\u201d of the MLI.<\/p>\n\n\n\n
Source: KPMG, 26 November 2019<\/p>\n","protected":false},"excerpt":{"rendered":"
In October 2019, Mauritius has ratified the multilateral instrument (MLI) pursuant to the base erosion and profit shifting (BEPS) project. The MLI is the agreement that allows jurisdictions to amend their tax treaties to include tax treaty-related BEPS recommendations. Since Singapore adopted the MLI in 2019, the action by Mauritius may have implications for existing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,6],"tags":[],"class_list":["post-1397","post","type-post","status-publish","format-standard","hentry","category-incometax","category-techupdates"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/1397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/comments?post=1397"}],"version-history":[{"count":1,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/1397\/revisions"}],"predecessor-version":[{"id":1398,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/1397\/revisions\/1398"}],"wp:attachment":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/media?parent=1397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/categories?post=1397"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/tags?post=1397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}