The Ministry of Finance notes that Ukraine can get on the offshore list of EU countries, if it does not ratify MLI (Multilateral Instrument) by 2019, FinClub reports.
“The multilateral convention MLI is the agreement, by joining which the country gets opportunity to simultaneously introduce amendments to all or some effective Conventions for the Avoidance of Double Taxation”, according to the message of the Ministry of Finance.
This agreement is the part of the Action Plan on BEPS (Base Erosion and Profit Shifting). This agreement is the step 15 of the Action Plan on BEPS.
Signing and ratifying the multilateral convention, Ukraine also simultaneously fulfills steps 6 and 14 of BEPS plan, which are included into the minimal standard of BEPS plan.
Now, the President is expected to provide authorities to the Minister of Finance for signing MLI agreement. Then, the agreement should be ratified by the Parliament.
Ukraine should ratify MLI agreement by the year-end; otherwise, it can get on the offshore list of EU countries.