2) An agreement on tax information – a tax treaty whose scope is limited. The multilateral instrument makes these provisions of the convention necessary to meet the minimum standard of the instrument, which is part of the Finnish network of tax agreements with other countries. These provisions constitute the introductory chapter of the tax treaties, which deals with the purpose of the treaty, the provision on the prevention of contractual abuses, the revised provisions relating to the mutual agreement procedure and the provision relating to the corresponding adjustments related to the transfer prices of the group`s companies. In addition, Finland will apply the provisions of the multilateral instrument on arbitration procedures. With regard to the other provisions, Finland expressed reservations, i.e. that it refrained from applying these provisions of the multilateral instrument. If Finland or the other party to the multilateral instrument has made a reservation in the absence of the application of the provisions of the multilateral instrument concerning the tax treaties of the country concerned, there will be no change in the relevant provisions of the existing bilateral tax treaty. This means that Finland, for its part, will not apply the provision of the multilateral instrument. Instead, it applies the provision of the existing bilateral tax treaty.
The entry into force date of the multilateral instrument in Finland is 1 June 2019. However, two States parties to bilateral tax treaties will not begin to apply the multilateral instrument until after the instrument enters into force in both Member States. The finnish official publication, “Collection of Statutes” (S-d-skoelma; Fedattningssamling) contains specific communications recorded by the Ministry of Finance for each country that has a tax agreement with Finland and in which the multilateral instrument has entered into force. These notices are listed in any existing tax treaty and, if necessary, in treaty amendments. On 13 February 2019, the Finnish Parliament ratified the 2016 multilateral agreement on the implementation of measures to prevent the erosion of the base and the transfer of profits (“multilateral instrument”) within the framework of the tax treaty. The multilateral instrument provides for a simultaneous modification of a number of provisions in bilateral tax treaties, without amending each treaty one after the other. The Finnish government`s decree of 24 April 2019 (in Finnish and Swedish, link to Finnish) contains information on how Finland has ratified the multilateral instrument, with reservations and notifications, in the ratification letters sent to the custodian by Finland, as well as the text of the multilateral instrument. When applying the provisions of the tax treaties, the original tax treaty, its amendment protocols, the multilateral instrument and the possible reservations and communications of the contracting states are taken into account. Finlex`s website publishes all current versions of Finnish tax treaties with other countries. In addition, for contracts that the Multilateral Instrument amends when they are implemented, all relevant provisions affecting the relevant tax treaty are published on the website.
This is presented in a compilation document. Under the heading of each tax treaty, a line containing information about relevant updates and production documents is added. These lines are added successively at different times when the documents are ready to be published. The purpose of publishing recent updates and compilations on the Internet is to facilitate the understanding of all contracts, which are made up of many parties.