Ministers and high-level officials from 76 countries and jurisdictions have signed a multilateral BEPS convention to close loopholes in tax treaties and reduce opportunities for tax avoidance by multinational enterprises.

The multilateral convention to implement tax treaty related measure to prevent base erosion and profit shifting (BEPS) was officially signed at the annual OECD week.

The OECD suggested that the signing ceremony bring is an important milestone in the the goal of preventing BEPS.

The treaty allows jurisdictions to transpose results from the OECD BEPS Project into their existing networks of bilateral tax treaties.

“The signing of this multilateral convention marks a turning point in tax treaty history,” said OECD secretary-general Angel Gurría.

Revenue losses from BEPS are estimated at $100-240 billion annually, or the equivalent of 4-10 percent of global corporate income tax revenues.

Gurría continued: “We are moving towards rapid implementation of the far-reaching reforms agreed under the BEPS Project in more than 1,100 tax treaties worldwide, and radically transforming the way that tax treaties are modified. Beyond saving signatories from the burden of re-negotiating these treaties bilaterally, the new convention will result in more certainty and predictability for businesses, and a better functioning international tax system for the benefit of our citizens. Today’s signing also shows that when the international community comes together there is no issue or challenge we cannot effectively tackle.”

Article compliments Captive International.