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Checklist for applicability of Multi Lateral Instruments Provisions to existing tax treaty

 

Checklist for applicability of Multi Lateral Instruments Provisions to existing tax treaty

 

In our previous posts of Compatibility clauses of MLI provisions, we discussed the relationship between the MLI provisions and the existing provisions of tax treaty among the Contracting Jurisdictions.

Flowchart for quick understanding

Today, we will see the simple checklist for understanding applicability of MLI provisions to Tax treaty.

Question 1: Whether the country is a signatory to MLI?

Yes : Jump to Question 2

No:  Provisions of Existing Tax Treaty will be applicable

Question 2: Whether both the Contracting Jurisdictions have notified each other in their list of tax treaties which are to be modified by MLI as Covered Tax Agreements?

Yes : Jump to Question 3

No:  Provisions of Existing Tax Treaty will be applicable

Question 3: Whether MLI provisions is a minimum standard?

Yes : Provisions of MLI will apply

No:  Jump to Question 4

Question 4: Whether either contracting jurisdictions of the CTA has expressed reservations for the non-applicability of the MLI provisions?

Yes : Provisions of Existing Tax Treaty will be applicable

No:  Jump to Question 5

Question 5: In case of optional provisions, whether both the Contracting Jurisdictions to the CTA have selected same option and notified to the Depository?

Yes : Provisions of MLI will apply

No:  Provisions of the Existing Tax treaty will be applicable

By Taxbeech

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