Recently, Mauritius has signed the Multilateral Convention to Implement Tax Treaty Related Measures to prevent Base Erosion and Profit Shifting (MLI).
Mauritius has also reaffirmed that it will implement the minimum standards outlined in the OECD/ G20 BEPS plan by 2018. It has committed to modify its remaining tax treaties through bilateral negotiations.
The MLI is a legal instrument designed to prevent Base Erosion and Profit Shifting (BEPS) by multinational enterprises.
BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.
The MLI allows jurisdictions to transpose results from the OECD/ G20 BEPS project, including minimum standards to implement in tax treaties, to prevent treaty abuse and “treaty shopping”, into their existing networks of bilateral tax treaties in a quick and efficient manner.