The International Tax Reform on BEPS
- What It is, and What It Isn't
The Undersecretary went on to add that, "The Ministry of Finance is collaborating with the Organization for Economic Cooperation and Development (OECD) to organise a series of workshops and meetings with relevant authorities in the UAE, which include the multinational BEPS
Project -- an initiative launched by the OECD and the Group of 20 (G20) to enhance fiscal transparency, reduce tax evasion and promote the exchange of information for tax purposes.
New rules to limit BEPS
should not affect a multinational corporation's ability to keep its members of the consolidated group liquid, should not lead to an overreliance on the banking system, and should not expose the company to extra risks or costs.
Korea, which participates in the BEPS
project, also agreed to apply the agreement to its tax codes.
At the same time, 35% said they planned to wait for individual countries to implement BEPS
measures before acting -- undoubtedly aware of recent criticism from China and other countries that the rules may not be appropriately tailored to the developing world.
Countries are using the Final Reports of the BEPS
Project as the basis for taking international measures against tax avoidance by multinational corporations.
Several of these, though not all, are concerned with tailoring the outcomes of the BEPS
process to the special circumstances of developing countries," Keen said.
Equalisation levy is one of the recommendations of the BEPS
Many of the measures included in the package generally are consistent with the OECD's BEPS
recommendations, and, in fact, one of the package's goals is to ensure implementation of those recommendations within the EU in a consistent and coordinated manner.
Corporate taxes From a corporate perspective, we continue to see legislation and detailed proposals in response to the fifteen actions that comprise the BEPS
proposal represents a comprehensive package of tax recommendations that was recently endorsed by G-20 finance ministers.
refers to tax planning strategies that exploit thegaps and mismatches in tax rulestoartificially shift profits to low or no-tax locations where there is little or no economic activity, resulting inlittle or no overall corporate tax being paid.