Thursday, June 8 2017 14:55

ArmInfo. Armenia joint multi sided Convention of OECD, which will allow to implement norms of international agreements practically on preventing tax evasion and transfer of profits.

According to Finance Ministry press service, from the Armenian side, Armenian Minister of Finance Vardan Aramyan signed BEPS Convention (Base Erosion and Profit Shifting - "Blurring the tax base and the withdrawal of income from taxation"). The signing ceremony took place on June 7 in Paris, with the participation of 68 countries, including Austria, Australia, Finland, Georgia, Germany, France, Italy, Sweden, India, Britain, Russia, Switzerland.

According to the source, BEPS convention offers solutions for governments to eliminate differences in existing international tax rules and identifies 15 specific actions that are aimed  to regulate steps to prevent the erosion of the tax base and the movement of profits, and to increase the effectiveness of the work carried out in this direction. In particular, 15  actions of Convention provide for the creation of a multilateral instrument that is not only effective but technically easy to operate, which will allow for the revision of agreements that exclude double taxation and apply a uniform approach within these agreements to all countries, which is usually impossible in the framework of three sided  agreements.

"Obviously, signing of Convention implies obtaining the status of a reliable partner in the field of international cooperation and will allow applying uniform methods for countries that have signed the Convention on certain clauses of double taxation agreements, which will increase the effectiveness of the fight against non-payment of taxes, "the Finance Ministry statement reads.