Mauritius officially signs the OECD’s multilateral tax treaty

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The Ministry of Finance in Mauritius has signed the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting (BEPS). A multilateral instrument is a legal tool designed to prevent profit shifting as well as enabling the implementations to the minimum taxation standards for each jurisdiction. This will allow the OECD to amend and put the current networks of bilateral tax treaties into practice proficiently and quickly, as well as allowing all jurisdictions to transpose the required standards into their tax treaties to discourage what’s known as ‘treaty shopping’ i.e selecting their legal entities country of incorporation based on tax breaks.