Base Erosion Profit Shifting (BEPS)

The Organisation for Economic Co-operation and Development’s (OECD) Inclusive Framework on Base Erosion Profit Shifting (BEPS) 1.0 (referring to Pillar 1) was introduced to allocate more taxing rights to countries where multinational enterprises (MNEs) have significant consumer-facing activities and generate profits, regardless of physical presence. There were loopholes and mismatches in tax rules that were resolved with BEPS 1.0 in the early 2010s.

Fast forward to today, the digitalisation of the economy requires new definitions and rules to address the transformative nature of how business is conducted, resulting in a Two-Pillar solution that formed the foundation of BEPS 2.0, or Pillar 2. This Pillar continues to evolve with new initiatives, focusing on establishing a global minimum tax and an overall modernisiation of international tax rules to better fit the realities of the digital economy.

• Increased tax liabilities due to higher effective tax rates for MNEs overall from Income Inclusion Rule (IIR)

• Adjustments in tax planning strategies 

• Ensure alignment with global tax strategy 

• Greater global tax transparency and alignment between countries

• Considering Singapore as a strategic location & potential adjustments in operations

Navigate Pillar Two by first understanding what it entails.

Download the guide to learn about the key aspects and implications of Pillar Two under the OECD's BEPS framework, focusing on global tax reform and its impact on multinational enterprises.

We combine technology, transformation and compliance capabilities under a new framework – develop and implement a customised target operating model for your tax and finance functions.

The end goal of this technology-enabled holistic approach is to reduce costs, mitigate risks, improve quality and drive more strategic value across your organisation.

Our KBAT tool covers the end to end Pillar 2 compliance process. It utilises advanced technological solutions, data analytics, artificial intelligence, and automation tools, to streamline compliance processes, enhance accuracy in reporting, and mitigate risks associated with BEPS-related tax challenges.