Seventh annual Global survey on the OECD’s Base Erosion and Profit Shifting (BEPS)

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Proactivity in the midst of change

Eighth annual global survey on the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, and beyond

Deloitte’s 2021 Global Tax survey provides valuable insight into the strategies of some of the world’s largest multinational companies in the face of changes in the international tax framework.

On the minds of tax and finance executives

In this latest survey, we asked tax and finance managers and executives from across the globe about topics that were high on their agenda in 2021:

  • The Pillar 1 / Pillar 2 project
  • Digital taxation
  • Tax transparency
  • Tax governance
  • US tax proposals
  • Progress of BEPS related measures
  • Impact of COVID-19 pandemic and the support and relief measures enacted by local governments
2021 Global Tax Survey: Beyond BEPS

Download summaries and industry insights

Key findings focus on the continued impact of tax changes and the need to be prepared

Our survey suggests the impact of the BEPS project and other tax reform initiatives will continue to be felt throughout 2021 and 2022, particularly as more measures become embedded into local laws. As governments seek to finance large deficits, the impact of the COVID-19 pandemic is expected to continue, likely leading to increased taxes and tax disputes.

Tax governance remains high on the Board’s agenda

• 74% of respondents are concerned about the media coverage, political and activist group interest in corporate taxation, and 79% expect such interest to increase following COVID-19 pandemic.

• 76% of Boards are actively engaged in tax governance, this has remained high over the years.
Taxation of the digital economy remains a ‘hot topic’*

• 41% of groups have been actively engaged in the OECD’s Pillar 1 / Pillar 2 project consultation either directly or through other channels.

• 62% of groups are concerned that a possible outcome of the OECD’s Pillar 1 / Pillar 2 project will be an increase in their corporate tax liability.

*these responses were provided before significant progress was made by the OECD Inclusive Framework / G20 on achieving a high level consensus on Pillar 1 / Pillar 2.
Cross-border coordination has room to improve

Only 23% of tax leaders agree that most tax administrations will interpret the changes to the Transfer Pricing Guidelines in a consistent manner.

• 57% of groups are concerned about lack of guidance from the tax authorities around the world about the Principal Purpose Test (PPT).
Businesses are slowly securing additional resources to deal with BEPS-related changes

Despite the unprecedented degree of change in the tax laws worldwide, only 32% of organizations have secured (or plan to secure) additional resources / headcount for their tax group.

Only a quarter of respondents (24%) have or intend to co-source or outsource some tax group functions due to BEPS-related changes.

Increased investment in tax-related technology appears more prominent; 47% have increased their investment in technology to cope with the volume of BEPS-related changes.

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Download summaries and industry insights

Tax governance remains high on the Board’s agenda

 71% of respondents are concerned about the media coverage, political and activist group interest in corporate taxation, and consequently, the involvement of C-suite in organizations’ tax strategies has also remained consistently high over the years

 60% of companies have implemented additional corporate policies and procedures in response to the increased scrutiny related to corporate taxation
Taxation of the digital economy remains a ‘hot topic’

• 44% of respondents expect a global consensus on taxation of the digital economy that will lead to changes

• 31% of tax leaders have been actively engaged in the OECD’s Pillar One/ Pillar Two project consultation

More than half of respondents (62%) are concerned that the OECD’s Pillar One / Pillar Two project may lead to an increase in their corporate tax liability
Cross-border coordination has room to improve

Only 23% of tax leaders agree that most tax administrations will interpret the changes to the Transfer Pricing Guidelines in a consistent manner

• 57% of groups are concerned about lack of guidance from the tax authorities around the world about the Principal Purpose Test (PPT)
Businesses are slowly securing additional resources to deal with BEPS-related changes

Despite the unprecedented degree of change in the tax laws worldwide, only 32% of organizations have secured (or plan to secure) additional resources/headcount for their tax group

Only a quarter of respondents (24%) have or intend to co-source or outsource some tax group functions due to BEPS-related changes

Increased investment in tax-related technology appears more prominent; 47% have increased their investment in technology to cope with the volume of BEPS-related changes.

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Research scope

The survey was conducted between January and February 2021. More than 130 tax and finance managers and executives from multinational companies across 28 countries responded to the survey.

In this latest survey, we were interested in the respondents’ views on the topics that were high on their agenda in 2021, such as the Pillar 1 / Pillar 2 project and the ‘digital taxation’ debate, tax transparency, tax governance and US tax proposals, in addition to their views on the progress of BEPS related measures.

Respondents were also asked about the impact on their businesses of the COVID-19 pandemic as well as the support and relief measures enacted by local governments. While the world is slowly returning to some semblance of post-COVID-19 normality, economic recovery will occur at varying speed location by location. Regardless, it is certain that more tax change is to be expected and businesses need to remain prepared.

See previous editions

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