Base Erosion and Profit Shifting (BEPS): Key considerations for real estate funds
BEPS: Key considerations for real estate funds
This new report explores the impact on real estate funds of four of the 15 OECD actions: restricting interest deductions, restricting the use of hybrid instruments, limiting treaty benefit and expanding the permanent establishment definition.
KPMG’s Global Financial Services Tax network has created a follow-up report which highlights the progress governments are making around the globe and examines the changes and proposals they have made, and looks at what impact this may have on real estate funds since our original report back in December 2015.
Please click here for the latest report: BEPS - Update for real estate funds.
On 5 October 2015 the Organisation for Economic Co-operation and Development (OECD) issued their highly anticipated reports on proposals to tackle what governments perceive as tax-avoidance, using international tax standards (base erosion and profit shifting or BEPS). The development of these proposals was prompted largely by prominent reports in the media of a number of well-known multinationals who were paying very little corporate income tax in countries where they were deriving significant sales revenue. As a result of this press coverage, the drive to revise international tax arrangements gained a political impetus that it had previously lacked, and the proposed revisions to the international standards have been turned around according to a remarkably tight timetable.
The first report explores the impact on real estate funds of four of the 15 OECD actions:
- restricting interest deductions
- restricting the use of hybrid instruments
- limiting treaty benefit
- expanding the permanent establishment definition.
Please click here for the first report: BEPS - Key considerations for real estate funds.