Thai and Vietnamese DTAs to be modified by MLI

Thailand and Vietnam signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the “MLI”), joining 97 other jurisdictions.

They have nominated their DTAs with Australia as a “Covered Tax Agreement”, i.e., an agreement that will be subject to modifications as agreed upon with Australia.

The relevant MLI modifications will affect each DTA in respect of:

• withholding tax on amounts paid or deemed to be paid to a non-resident on or after 1 January; and
• all other taxes levied by Australia in relation to income, profits or gains of any income year beginning on or after 6 months after the date of entry into force of the MLI.