What is the base erosion and profit shifting (BEPS) initiative?
The Base Erosion and Profit Shifting (BEPS) initiative is an international project launched by the Organization for Economic Cooperation and Development (OECD) to reduce tax avoidance via corporate tax planning strategies. This project was developed in response to the increasing use of multinational companies transferring their profits to low-tax jurisdictions around the world. The BEPS initiative has been adopted by more than 100 countries, including New York, and consists of 15 action points that provide countries with the tools to close loopholes, ensure transparency, and create a level playing field for all taxpayers. The main objectives of the initiative are to ensure that profits are taxed in the jurisdiction where profits are generated, and that companies will no longer be able to shift their profits to avoid taxation. Overall, the BEPS initiative is working to combat tax avoidance and increase tax efficiency, while ensuring that companies pay taxes in the jurisdiction in which they are due.
Related FAQs
How do transfer pricing rules affect international taxation?Are there tax treaties between countries?
How does taxation of foreign dividends work?
How do governments assess and collect taxes on the income of non-residents?
What is the taxation of foreign trusts?
What is the taxation of foreign financial assets?
What are the implications of Double Taxation Treaties?
How do digital services taxes work?
What are the specific regulations associated with cross-border financial transactions?
What is the taxation of repatriated profits?
Related Blog Posts
An Overview of International Tax Law: What You Need to Know - July 31, 2023Key Principles of International Tax Law - August 7, 2023
Learn About the Basics of Cross-Border Tax Cooperation - August 14, 2023
Understanding the Double Taxation Principle and How It Affects Businesses - August 21, 2023
A Guide to International Tax Planning Strategies - August 28, 2023