By adopting the Action 6 minimum standard of the OECD BEPS project, San Marino is bringing its network of international treaties against double taxation, in force at the time the Republic joined the Inclusive Framework, into line with the BEPS principles, as set out in the Final Report of Action 6, entitled Preventing the Granting of Treaty Benefits in Inappropriate Circumstances, drafted in 2015 and followed up by OECD Working Party 1.
The work aimed at the adoption of Action 6 will be carried out in cooperation between the Department of Finance and Budget (on behalf of the Ministry of Finance and Budget) and the Directorate of Economic Affairs (on behalf of the Ministry of Foreign Affairs).
In order to speed up the adoption process of this measure and thus reduce the number of bilateral consultations, a Multilateral Instrument (MLI) was signed on 7 June 2017, allowing for the simultaneous amendment of existing double tax treaties to bring them into line with the BEPS principles. In this way, San Marino has also indirectly adopted the Action 15 of the OECD BEPS Project, even though it is not a minimum standard. The Multilateral Convention was ratified on 20 February 2020 and entered into force for San Marino on 1 July 2020.
The various OECD peer reviews of the Action 6 minimum standard have not yet resulted in any recommendations. Here is the latest Peer Review Report coordinated by the OECD Secretariat - WP1, which shows that the standard will be fully adopted when the MLI is also fully in force for the jurisdictions with which the Republic of San Marino has signed its tax treaties, as all the necessary steps have already been taken by San Marino.
