In our article on the news in treaties on prevention of double taxation, we have, among other things, informed you about the beginning of the process of approval for ratification of  the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, which the Czech Republic signed in Paris on 7 June 2017 (hereinafter “MLI”). The Czech Republic has decided to accept only minimum standards relating to misuse of contract on prevention of double taxation and for more efficient solution of international tax disputes, that is the most moderate version. 

The process of approval has progressed again somewhat, when the Budget and the Foreign Committee recommended to the Chamber of Deputies to grant approval for MLI ratification. This recommendation follows up on approval granted by the Senate on 20 December 2018 already. The process of approval currently finds itself in the second reading at the Chamber of Deputies, and it can thus be expected that the Members of Parliament will follow the recommendation of the committees.

We will keep you informed about further development.