13 Sept 2018
The Application of the Articles in the Multilateral Convention to HK’s Tax Treaties
Scope of notifications
The purpose for a contracting jurisdiction (i.e. Hong Kong) to make notification to the OECD Depositary is twofold: to ensure clarity and transparency about the application of the MLI; and acquire the legal validity of the action taken. In addition to the notification for the nomination of CTAs at the signing day of the Multilateral Convention (the MLI), notification can be categorized as follows:
- The notification made for reservations not to apply the provisions in the article of the MLI to the CTAs that already contain MLI-compatible or BEPS-compliant provisions
- The notification of article provisions that are described under the compatibility clause and are not subject to a reservation
- The notification made for optional provisions or alternative provisions
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