The "Taking the pulse" series look at how BEPS related tax policy is evolving across various regions, in response to the final BEPS Action Plan recommendations from the OECD. This series explores recent trends, new challenges and opportunities and offers insights into how tax leaders of multinational organizations are responding.
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 and 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 achieve the G20’s approval by the end of 2015.
Most OECD and G20 countries have been engaged in the OECD’s work, and many other countries are either fully engaged or watching developments closely. Each government will have to determine how the guidance will affect 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.
The series first launched in 2014 and continues to be updated as developments evolve. The latest EMA edition launched in November 2015, the Americas edition launched in February 2016 and the Asia Pacific region publication was released in May 2016.
Even though the OECD BEPS Action Plan Final Reports were only published on 5 October 2015, many countries are already changing their tax legislation or administration in response.
This section will summarize such actions taken so far by countries regarding the Action Plan’s 15 points.