Tax measures expected for international companies

The public discussion about ‘base erosion and profit shifting’ (BEPS) and the changes to the laws and legislations as a result of this will not just affect Google and Starbucks, but also smaller international companies. In February 2013, the OECD issued the BEPS report, which was followed in July 2013 by the BEPS action plan. This action plan contains 15 points in order to call a halt to ‘BEPS’ for international companies.

The 15 action points, which are supported by the G-20 and the EU, must be completed between September 2014 and December 2015. International companies will therefore soon be involved with changes in the area of the use of financial and financing structures, restrictions on interest deductions, changes in the field of transfer pricing, a disclosure obligation with regard to tax planning and suchlike.

In accordance with the old adage of ‘prevention is better than cure’, we would advise you to chart or have charted the possible consequences of these changes, in the near future, so that you will be well prepared when these changes are enforced.

If you have any questions about the possible consequences of the BEPS action plan on your business operations, please do not hesitate to contact your advisor at Baker Tilly.