Ukraine signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS). Ukraine becomes the 83rd jurisdiction to join the Convention, which now covers over 1,400 bilateral tax treaties. Further detail on Ukraine’s membership is available on the OECD’s website.

The Convention entered force on 1 July 2018 for five of the jurisdictions (Austria, the Isle of Man, Jersey, Poland and Slovenia) that signed last year. The Convention, negotiated by more than 100 countries and jurisdictions, is one of the most prominent results of the OECD/G20 BEPS project. It is the first multilateral treaty of its kind, allowing jurisdictions to integrate results from the OECD/G20 BEPS Project into their existing networks of bilateral tax treaties. Measures included in the Convention address hybrid mismatch arrangements, treaty abuse, and strategies to avoid the creation of a “permanent establishment”. The OECD/G20 BEPS Project aims to close the gaps in existing international rules that allow corporate profits to be artificially shifted to low or no tax environments, where companies have little or no economic activity according to the OECD.