Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ("Multilateral Instrument" or "MLI") 


In November 2016, over 100 jurisdictions concluded negotiations on the Multilateral Instrument that will swiftly implement a series of tax treaty measures to update international tax rules and lessen the opportunity for tax avoidance by multinational enterprises. The MLI entered into force on 1st July 2018.




Pursuant to Article 28(3) of the MLI, a reservation "shall modify for the reserving Party in its relations with another Party the provision of the Convention to which the reservation relates and to the extent of the reservation, and shall modify those provisions to the same exent for the other Party in its relations with the reserving Party." The principle of reciprocity applies for the Parties making the reservations (i.e. the opt-out provisions) with some exceptions.


A Party to the MLI is permitted to enter reservations for (opt out of) the MLI provisions to ring fence the extent to which the MLI modifies its covered tax agreements in its relations with another Party and vice versa.




Pursuant to Article 29(6) of the MLI, after becoming a Party to the MLI, a Party"may make additional notifications pursuant to subparagraphs b) through s) of paragraph 1 by means of a notification addressed to the Depositary" where the Party wishes to (i) opt-in for additional provisions of the MLI that goes beyond the minimum standards of the BEPS package required of a Party to the MLI or (ii) pursuant to Article 29(5) extend its list of covered tax agreements as described under Article 2(1)(a). 


A contracting jurisdiction to the MLI is required to make notifications of its MLI positions to the Depositary at the later of the dates on which it becomes a Signatory or Party to the MLI.


The MLI positions show the reservations and notifications that an MLI signatory makes provisionally or an MLI party makes definitively.

  • See the positions adopted by the signatory and Parties. [here]
  • More information about the MLI [here]