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Base Erosion and Profit Shifting (BEPS)

BEPS, which is short for “Base Erosion and Profit Shifting”, is a global initiative to tackle tax avoidance by multinationals. What started as an initiative to counter tax avoidance has morphed into a reshaping the international tax landscape – everything from the way profits are traced between countries to new documentation, reporting, and disclosure obligations. BEPS can affect fundamental aspects of your business – from financing to trading models to the cost of repatriating profits cross-border.


Many aspects of the OECD’s 15-point Action Plan have moved from the discussion stage to implementation. As a result, it’s critical that you identify which of the 15 actions may affect your business and determine how you will respond. Our international tax team can help you get started by conducting a BEPS Impact Review.


In carrying out a BEPS Impact Review, we apply a systematic approach to assessing the effect of each BEPS Action on your business. This methodology enables us to diagnose the problems and prioritize areas of remedial action. As part of the review, we provide a risk matrix that rates your tax risks from each BEPS action. If changes are needed, we can help you build a global project plan. And, because we take a hands-on approach, we work through the implementation stages with you in every country where change may be required.


Because the economic substance is central to BEPS, we have developed ESTaR – an innovative methodology for understanding risks around substance. ESTaR gives us a clear understanding of your value chain and business model, using a method based on templates that allow us to keep the discussion accessible and focused. ESTaR is tailored to your business and gives you an understanding of the economic substance risks in your business model.


BEPS is a vast topic, with tax rules changing in different countries over different time frames. But, BDO can help you make sense of it. Our integrated network of tax professionals in 162 countries and territories has a deep understanding of the rules. Because we meet regularly to share knowledge and best practices, we bring the global network knowledge to all engagements.

BEPS Impact Review

Risk matrix report rating each BEPS action point on your business

Impact assessment report providing assurance

BDO´s recommendations for your next steps

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