The UAE Ambassador to Peru, Mohammad Yousuf Al Awadi, and the Peruvian Finance Minister Carlos Oliva, have signed the BEPS (Base Erosion and Profit Shifting) Multilateral Convention, a multilateral instrument to implement Tax Treaty-Related Measures to prevent base erosion and profit shifting.

The OECD describes BEPS as “tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity.”

The signing took place at the fifth plenary meeting of the Organisation for Economic Cooperation and Development (OECD)’s Inclusive Framework on Base Erosion and Profit Shifting held in the Peruvian capital, Lima, on June 27-28. A delegation from the UAE’s Ministry of Finance took part in the meeting, along with delegations from other OECD Member States.