Analysis

Analysing BEPS impact across industries

BEPS: Impact on Consumer Business

The steps taken by the respective countries to implement the action plans could have significant impact on the bottom line of a large number of consumer business MNEs by increasing their overall effective corporate income tax rate.

BEPS : Impact on Infrastructure sector

Being a developing economy, India has been one of the active participants of the BEPS project and it is expected that Indian Government would come out with significant enactment and amendments in its domestic tax laws in the forthcoming Budget 2016 to be in line with some of the critical BEPS recommendations impacting India.

BEPS: Impact on Life Sciences and Healthcare Sector

This paper seeks to capture some of the key potential impacts of BEPS for companies operating in Life Sciences and Healthcare (LSHC) – Indian multinational enterprises [MNEs] having global operations and MNEs operating in India. The impact discussed below will depend to a large extent on the rules proposed in the Indian tax law and the positions India adopts in the multilateral instrument or bilateral tax treaties.

BEPS: Impact on Manufacturing Sector

The final BEPS reports were released on 5 October 2015 and ratified by the G-20 Finance Ministers at their meeting in Lima, Peru on 8 October 2015. This paper seeks to capture some of the key potential impacts of BEPS for Indian multinational enterprises [MNEs] in Manufacturing sector having global operations and MNEs operating in India.

BEPS: Impact on Private Equity sector

In this age of increasing focus on bottomlines, it is indeed tempting for a global tax director of a multinational (‘MNC’) to explore leveraging on arbitrage amongst tax rates of various countries and to park profits in low tax jurisdictions. While such investment/ transfer pricing structures are generally within the four corners of law, not unsurprisingly, they create a disconnect between countries where MNCs carry out substantial activities and countries where they report profits.

BEPS : Impact on TMT Sector

BEPS measures seeks to improve the coherence of international tax rules, reinforce their focus on economic substance and ensure a more transparent tax environment. Having regard to the BEPS recommendations, business models are likely to be subjected to increased scrutiny in India specially- assertion of permanent establishment on accessibility of websites from India, presence of marketing or sales personnel in India or for presence of some equipment.

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