Ireland signed the Multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting (MLI) in June 2017. The MLI modifies the application of the majority of Ireland’s Double Taxation Agreements (DTAs). It implements agreed minimum standards and best practices to counter treaty abuse and to improve dispute resolution mechanisms. It also provides flexibility to accommodate different tax treaty policies.
Ireland deposited its instrument of ratification and final list of reservations and notifications with the Organisation for Economic Co-operation and Development (OECD) Depositary on 29 January 2019. The OECD has published the list for each MLI signatory.
The MLI entered into force for Ireland on 1 May 2019. As a general rule, it began to have effect for Ireland’s tax treaties:
- with respect to taxes withheld at source, from 1 January 2020
- with respect to all other taxes levied by Ireland, for taxes levied with respect to taxable periods beginning on or after 1 November 2019.
The date on which the MLI modifies each treaty depends on when Ireland’s treaty partners deposit their own instruments of ratification.
Revenue will publish on an ongoing basis synthesised texts in the relevant country page. These texts are developed to facilitate the interpretation and application of the treaties as modified by the MLI. The authentic legal texts of the treaties and the MLI take precedence and remain the legal texts applicable.
The OECD has published also an Explanatory statement to the MLI and toolkits to facilitate its understanding and application.