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Base Erosion and Profit Shifting (BEPS)

The OECD and other multilateral forums have been exploring options to resolve the current debate over policies that would adjust which countries can tax what share of income from multinational corporations. Just as the policy changes from the Base Erosion and Profit Shifting (BEPS) project in 2015 created different incentives for business investment by multinational corporations and the design of their supply chains, this new debate will also change those incentives.

The impact of these policies should be taken into consideration by policymakers when determining whether additional measures should be adopted to further minimize policy gaps and opportunities for tax planning. Taxes matter for decisions to be made by businesses, individuals, and families, and it is important for policymakers to understand that rules can be designed to be neutral rather than distortionary.

The posts below review the evidence that has been gathered on the impact of policies targeted at profit shifting.

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Summary and Analysis of the OECD’s Work Program for BEPS 2.0

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