BEPS & Transfer
The inclusive framework on Base Erosion and Profit Shifting (BEPS) is a project initiated by the OECD and EU. The project refers to tax planning strategies used by MNE’s that exploit loopholes and mismatches in tax rules, with the aim of paying no or as little tax as possible. BEPS and transfer pricing are important topics to keep in mind for companies. BEPS results in multiple actions, such as fundamental changes of transfer pricing rules, changes in tax treaties and the implementation of the EU’s Anti Tax Avoidance Directive. BEPS and transfer pricing are linked because transfer pricing was a popular tool for tax avoidance by companies. This allowed some companies to shift their profits to lower-tax jurisdictions to avoid high tax rates.
The OECD and BEPS
The OECD is an international organisation. Their main object is to develop policies that promote prosperity, equality, opportunity and well-being for all. The OECD has issued guidelines for transfer pricing. More than 140 countries around the world support the BEPS project. As of July 2017, the OECD is updating its transfer pricing guidelines for multinationals to bring them in line with the recommendations of the BEPS project. Since this update, the guidelines include a three-step approach to BEPS transfer pricing documentation. This three-step approach includes the documentation of a master file, local files and country-by-country report. Another initiative by the OECD is the so-called Two-Pillar Solution. This solution addresses the tax challenges arising from the digitalisation of the economy.
BEPS transfer pricing guidelines
The BEPS and transfer pricing guidelines are the starting point for all member countries. The guidelines provide a solution to disputes between tax authorities of OECD member countries. However, for the BEPS transfer pricing guidelines to be effective, member states must implement the guidelines in their domestic laws or tax treaties. The transfer pricing guidelines provide assistance and guidance on all transfer pricing related matters. Important objectives of the guidelines include avoiding double taxation, minimising disputes between tax authorities and promoting international trade and investment.
For the BEPS project to be effective, there are multiple action plans. Many countries around the world are implementing these action plans to tackle tax avoidance, improve coherence of international tax rules, ensure a more transparent tax environment and address the tax challenges arising from the digitalisation of the economy. The BEPS project urges companies to take action and comply with the new requirements. BEPS compliance is important for your company. In case of non-compliance, you may face questions and audits from tax authorities or even penalties.
Are you struggling to keep your BEPS TP reporting organised? Coperitas is a global tax software that can help you drafting and maintaining these reports. Our software can assist your company by organising all required reports. If you would like to discuss how Coperitas can be of service to your company, we are happy to provide for a demo. We are looking forward to meeting you.
Goal of our solution
One thing was very clear from the start: our solution had to be user-friendly and enable tax teams to become and remain in control without unnecessary interference from consultants. And we achieved our goal. Coperitas succeeded in creating a transfer pricing tool that can function as a stand-alone solution for your Transfer Pricing challenges and automation.
All the information combined
On the well-defined dashboard all this information is combined, and the great transfer pricing documentation generator makes sure you always stay compliant and in control. Because of the flexible way Coperitas is designed, it can also serve as a solution for challenges related to tax, finance, and legal matters.
Built with knowledge
During development, we worked closely with tax teams of multinationals and transfer pricing experts. This resulted in additional features. Precisely these features made the in-house tax department of one of the largest Dutch multinationals decide to switch from their running software solution to Coperitas.
Empowering tax teams with passion
It is our passion to empower tax teams to operate independently and become in control of their transfer pricing with the help of technology. We guide clients to make an informed decision on the optimal use of technology within their company. Partnerships enable us to offer clients software solutions that are not only applicable to today’s goals, but also to those of tomorrow. Thanks to these partnerships, Coperitas can rely on a combined experience of over 100 years of practical transfer pricing knowledge. This means that we can support you every step of the way!
More about Coperitas
The journey of Coperitas began in 2016 when we took on the challenge of creating the extra mile for multinationals. Our goal: to answer the increasing demand for flexible transfer pricing software from tax teams. This started the search for an effective solution to the growing compliance burden of multinationals.