Deputy Prime Minister Mehmet Şimşek has signed, on behalf of Turkey, a framework agreement on a multinational tax convention that will change the double taxation agreements, which had been mostly prepared during Turkey's G-20 chairmanship.

Preparations for the convention were completed under the auspices of the Organization for Economic Development and Cooperation (OECD).

Deputy Prime Minister Şimşek along with representatives from 76 countries, which signed or declared to sign the agreement, attended the signing ceremony at the OECD headquarters While the number of countries that will sign about 1,100 double taxation avoidance agreements in the first phase is expected to increase, about 3,000 bilateral agreements are likely to change under this framework. Turkey has also signed agreements with 88 countries to avoid double taxation.

With the agreement, which will ensure that the proposals embodied in Turkey's G-20 chairmanship are passed on, the aim is to seriously prevent both individuals and multinational companies from evading taxes.

The agreement is particularly aimed at countries renowned as tax havens and forces them to sign. It is expected that the first amendments to the agreements will be put into effect by 2018 at the earliest, following the agreement arrangements in domestic law, to be issued by the countries signing the framework agreement report their reservations and accept the amendments.

According to OECD estimates, governments are losing between $100 billion and $240 billion in tax revenues annually due to problems with taxation-related international regulations.