Bahrain, Saint Lucia and UAE Join BEPS Inclusive Framework
By Company Registrations Worldwide, 23rd May 2018
The Organisation for Economic Cooperation and Development (OECD) has announced that Bahrain, Saint Lucia and UAE have joined the inclusive framework on base erosion and profit shifting (BEPS). There are now 116 jurisdictions who have joined the BEPS inclusive framework since it was launched in June 2016. It’s objective is to address gaps in tax rules that artificially shift profits to low or no-tax locations where economic activity is limited or not present. The majority of these schemes are legal but because they operate across borders they can undermine the fairness and integrity of the tax system creating an unfair advantage over taxpayers who are voluntary compliant. BEPS has a major significance for developing countries who are heavily reliant on corporate income tax from multinational enterprises. The BEPS Project has engaged developing countries in establishing an international tax agenda to ensure that these countries receive support to address their individual needs.
The BEPS inclusive framework addresses key elements of international taxation such as:
- Transfer pricing and interest deductibility
- Developing guidance to support the consistent global implementation
- The four minimum standards —harmful tax practices, tax treaty abuse, country-by-country reporting, and dispute resolution
More developing countries continue to join the inclusive framework which requires profits to be taxed where economic activity and value creation occur. The 100+ developing countries participate in regional meetings to the discuss the challenges and implementation of BEPS through the Committee on Fiscal Affairs. The timelines for implementation depend on the level of development of participating countries.
Company Registrations Worldwide can assist you to incorporate a company in the jurisdictions mentioned in this article. We can also assist with tax registration as well as opening a corporate bank account. For more information please do not hesitate to contact us on +353 (0)1 687 4518 or fill out our contact form and a representative will be in contact as soon as possible.