OECD BEPS Action Plan - Moving from talk to action in the Asia Pacific region

OECD BEPS - Moving from talk to action in the Asia

This report explores how the Asia Pacific region is responding to the OECD BEPS Action Plan, which was created 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. With the G20 approval of the OECD’s October 2015 guidance on domestic legislative and administrative changes for all 15 action points, countries have moved from the consultation phase to implementation and legislation.

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In October 2015, after 2 years of outstanding effort, 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. The recommendations gained the G20’s approval on 16 November 2015.

Most OECD and G20 countries have been engaged in the OECD’s work, and many other countries in the Asia Pacific and worldwide are either fully engaged or watching developments closely. Each government will have to determine how the guidance affects its existing rules, and then undertake the process of proposing, debating, and enacting domestic tax changes. In some countries, years may pass before reforms become law.

This report is the fourth in our series of updates on how actions on BEPS policy are progressing in the Asia Pacific region.

In these pages, international tax leaders from KPMG’s member firms in the region offer insights on:

  • the impact of the BEPS debate on tax policy in the Asia Pacific and selected countries in the region
  • recent and pending changes to tax codes ahead of or in step with the OECD recommendations 
  • the changing attitudes of tax authorities as international tax reforms take hold
  • how international companies are reacting to and managing these reforms.

Our findings are set out in the following pages, starting with an overview of BEPS-related trends across the region, followed by an in-depth look at how events are unfolding in selected Asia Pacific countries. We conclude with strategic advice that tax directors of all international companies should consider now to guard against adverse change and thrive in Asia Pacific’s new tax reality.

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