BEPS MLI for Turkey: exchange of information to begin in 2021

On 28 May 2020, President of Turkey Recep Erdoğan approved and submitted a bill for the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) in Grand National Assembly of Turkey.

After the completion of ratification process, Turkey must deposit its ratification instrument to bring the MLI into force for its covered tax treaties.

The MLI will enter into force for a particular tax treaty on the first day of the month following a three-month period after both parties to the tax treaty have deposited their ratification instrument. 

Upon entering into force, the provisions of the MLI will apply for the tax treaty:

✅ regarding withholding taxes — from 1 January 2021 (in case of entry into force in 2020);

✅ regarding other taxes — with respect to taxable periods beginning on or after the expiration of a 6-month period following the date of entry into force.

Turkey’s provisional list of reservations and notifications at the time of signature:

A definitive list will be provided when the ratification instrument is deposited.


June 26, 2020