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Inland Revenue

Tax Policy

PUBLISHED 2 August 2018

BEPS Multilateral Instrument ratified

New Zealand has now ratified the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the “Multilateral Instrument”, or MLI), which is expected to enter into force for New Zealand from 1 October 2018.

This follows the recent enactment of measures to counter BEPS – activities multinational companies take to reduce the tax they pay.

The MLI will allow New Zealand to adjust its existing double tax agreements with other participating countries swiftly to adapt to the OECD’s new treaty provisions on anti abuse, dispute resolution and transfer pricing.

Normally these changes require a manual process of renegotiating each DTA individually. The MLI means New Zealand can do it automatically.

For more information, including the ratification status of other countries, see the OECD's information about the MLI.