The UAE deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) with the OECD on 29 May 2019.
The MLI is a multilateral treaty that enables jurisdictions to swiftly modify their bilateral tax treaties to implement measures designed to address multinational tax avoidance. These measures were developed as part of the OECD/G20 Base Erosion and Profit Shifting (BEPS) project.
For a bilateral tax treaty to be modified by the MLI, both treaty partners need to have signed and ratified the MLI and to have identified that particular bilateral tax treaty as a treaty to be covered. The MLI now covers almost 1,530 bilateral tax treaties.