BEPS refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in little or no overall corporate tax being paid. This results in the erosion of the tax base in countries and seriously impacts the revenue of governments, which undermines the fairness and integrity of tax systems globally.

In an increasingly interconnected of world economic and development of digital economics, as well as financial pressure on the governments, the BEPS issues have reached to the highest level of government, media and the public’s attention. As the result, the G20 has taken up the BEPS matter requested by the Organization for Economic Cooperation and Development (OECD). Implementation of the measures recommended in the different deliverables will address BEPS in some key pressure areas which were identified in the report Addressing Base Erosion and Profit Shifting endorsed by G20 in February 2013, and the Action Plan was unveiled in July 2013.

The global project to address BEPS continues to build momentum. With the release of final recommendations on all fifteen BEPS proposals on 5 October 2015 and their endorsement by the G20, countries are beginning to adopt legislation to implant recommendations, and the OECD is expected to start monitoring implementation of its Action Plan on BEPS.