Base Erosion Profit Shifting (BEPS) global survey results

Perspectives

2019 BEPS global survey

Results from Deloitte’s annual survey of multinationals

This is the sixth year that Deloitte has conducted the "OECD Base Erosion and Profit Shifting (BEPS) survey." The objective of this annual survey has been to gauge the views of multinational companies regarding the Global Tax Reset and the OECD's Base Erosion and Profit Shifting (BEPS) initiative, and the expected resulting impact on their organizations. The 2019 survey focused on respondents’ views on the topics that were high on the agenda in 2018, such as the Multilateral Instrument, the US Tax Reform and the ‘digital taxation’ debate, in addition to their views on the progress of BEPS related measures. The final 2019 survey results are below.

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The responses from this year's survey show that throughout 2018, countries continued to implement the BEPS recommendations into their domestic laws. The ratification of the Multilateral Instrument (MLI) also continues and although only a few bilateral treaties are impacted in 2019, a larger impact is expected from 2020 onward.

The concern about the media, political and activist group interest in corporate taxation, and consequently, the involvement of C-suite and/or Board of Directors in organizations’ tax strategies remains consistently high over the years, although there have been varying trends, by country.

In the 2019 survey the ‘hot topics’ such as taxation of the digital economy and the US Tax Reform were raised for the first time. Some of the survey’s key findings are reflected below:

  • Despite 76% of Boards actively engaged in tax governance, only 23% have secured (or plan to) additional resources for their tax function.
  • 52% expect a positive impact from US Tax Reform and 62% have implemented (or intend to) changes as a result of US Tax Reform.
  • 54% find that the tax authority in their country are becoming more rigorous in tax examinations and 66% indicate that the tax authority is increasing their use of data tools.
  • 72% are concerned about the lack of guidance from the tax authorities worldwide about the Principal Purpose Test in the Multilateral Instrument.
  • Only 43% expected a global consensus on taxation of the digital economy.

The rapidly changing tax environment poses many challenges – but, also opportunities – for multinationals and their tax functions. Find out more about BEPS and the Global Tax Reset or download the full survey now.

Global Tax Reset - BEPS Survey 2019

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