Bosnia and Herzegovina has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Convention), becoming the 90th jurisdiction to join the Convention.

The Convention, which covers over 1,600 bilateral tax treaties, allows jurisdictions to integrate results from the OECD/G20 BEPS Project into their existing networks of bilateral tax treaties which offers solutions for government to close gaps in international rules that allow corporate profits to ‘disappear’ or be artificially moved to low or no tax environments where companies have little or no economic activity.

Bosnia and Herzegovina’s minister of finance and treasury Vjekoslav Bevanda signed the convention at a ceremony held in Sarajevo.

The Convention was negotiated by more than 100 countries and jurisdictions under a mandate from the G20 finance ministers and central bank governors and became effective 1 January 2019.