For this report, international tax leaders from KPMGs member firms across the region were polled to get their views on trends and developments in the region. The report provides an overview of BEPS-related trends in the region as a whole, followed by an in-depth look at how events are unfolding in selected Asia Pacific countries.
The OECD Action Plan on BEPS, introduced in 2013, set 15 specific action points to ensure international tax rules are fit for an increasingly globalized, digitized business world. They also aim to prevent international companies from paying little or no tax. After 2 years of outstanding effort, on 5 October 2015, the OECD published guidance on domestic legislative and administrative changes to address all 15 of the Plan’s action points and gained the G20’s approval on 16 November 2015.
Most OECD and G20 countries have been engaged in the OECD’s work, and many other countries in the Asia Pacific region and worldwide are either fully engaged or watching developments closely. Each government will have to determine how the guidance affects its existing rules, and then undertake the lengthy process of proposing, debating and enacting domestic tax changes. In some countries, years may pass before reforms become law.