Changes to domestic laws as a result of the Organization for Economic Cooperation and Development’s Base Erosion and Profit Shifting ("BEPS") project will likely have a significant impact on multinationals and their cross-border trading activities. Changes to core corporate income tax and transfer pricing principles have been well publicised. However, the impact of BEPS on indirect taxation, is less well-defined.
Specific BEPS considerations that are likely to have an indirect tax impact on multinationals include the following:
The accompanying placemat highlights a number of the key indirect tax interactions with BEPS. It is intended to stimulate and support conversations aimed at identifying the types of businesses and operations affected by BEPS, as well as the broader indirect tax compliance, cash flow and potentially cost consequences which could arise as a result.