The signatories listed 2,362 tax treaties to be covered by the MLI. Of these, more than 1,100 contracts were listed by the two signatories. This means that these “matched” contracts will be modified by the MI. Of course, the number of corresponding contracts will increase as new signatories join MI. The minimum standard for dispute resolution will ensure that contractual obligations related to mutual agreement are fully implemented in good faith and that administrative processes support the prevention and timely resolution of contractual disputes. The MLI consists of two types of provisions: minimum standard provisions and optional provisions. The minimum provisions of the standard must be implemented in all tax treaties, as agreed in the BEPS package in November 2015. Optional provisions depend on the consent of the Contracting Parties and should not be implemented at all with the consent of the Parties. 1. A tax treaty covered by this Agreement shall be amended by containing the following preamble: “Aims to eliminate double taxation in respect of taxes covered by this Agreement without creating opportunities for non-taxation or tax-based taxation through tax evasion or avoidance (including through contract purchase agreements to facilitate the receipt of indirect benefits from resident third parties);”. The MI does not modify contracts as a protocol. Instead, the MI changes contracts by sitting next to them.
In many countries, a consolidated version of the amended treaties will not be available.