As of January 1, 2020. With the introduction of the Multilateral Instrument (MLI) and more specifically the Principal Purpose Test (PPT) in the MLI, many tax treaties will change as of that date.
As a result, your company might be risking higher taxes because certain tax treaty benefits could be refused.
If you are using international company structures that make use of treaty benefits, you might be at risk of being affected by the MLI. Tax treaty benefits may include a lower withholding tax rate for dividends, interest payments and royalties, but also the beneficial allocation of taxation rights and the determination of fiscal residence.
As the first tax treaties are set to change as of January 1, 2020, the time to take action is now!
Our specialists are ready to help you
KPMG Meijburg has formed a team of MLI-specialists that can provide you with specific guidance on how local tax authorities will apply the PPT. You can find their contactdetails on the right.
How do you know you are at risk?
If the answer to any of the questions below is 'yes' or 'maybe', your company could be affected by the MLI and you should take action right away.
Click on the image to contact us directly.
You can also download our factsheet for more information.