Category: BEPS

Since 2015, the OECD has published recommendations to governments round the world about how to tighten up corporate taxation by preventing BEPS – base erosion and profit shifting.

 

There were 15 BEPS action plans. Currently the most important BEPS measures include:

• Pillar 2: 15% corporate income tax rate
• MLI: Multilateral Instrument – really a super tax treaty that has rapidly updated around 2,000 bilateral tax treaties. Briefly, intercompany finance, warehousing and agency arrangements may be affected in various countries.
• Amount B: Acceptable taxable profit margins for import subsidiary companies at a click.
• And plenty more.

 

These are complex areas which came make the difference between multiple taxation or reduced taxation. Proper international tax advice is vital. We can help arrange this.