A new 2016 Global BEPS Readiness Survey examined how multinational enterprises are reacting to and preparing for the BEPS, revealing problems multinationals have adjusting to the new rules. The findings uncovered trends, revealed risks and exposed pain points on a global scale.
The percentage of respondents who are proactively taking steps in responding to BEPS has increased by 12 percent since last year (from 54 percent to 66 percent). Three-quarters of Europe respondents report taking steps proactively, which is 11 percentage points higher than the US. One-third of Asia/Pacific respondents report to wait for other countries to implement.
A new survey of 207 corporate tax executives and transfer pricing directors around the world found out that most respondents (83%) said that the BEPS Action 13 recommendations on transfer pricing documentation have created the biggest change in their tax department. Based on the BEPS Action requiring the biggest change in their department, 86% of respondents are increasing their time spent on BEPS-related compliance. This includes the majority of both Europe (90%) and Latin America (93%). The US lags the aggregate significantly (by 21 percentage points).
“In general tax and finance departments that are in charge of complying with BEPS regulations either don’t have enough people, or they are starting to make some plans related to how to move forward with this, but they are digging into the data and sometimes the data doesn’t align,” said Sam Cicogna, vice president and head of Onesource Transfer Pricing at Thomson Reuters.
Transfer Pricing Associates introduces TPA BEPS Desk. If you have any questions, or need more detailed advice on any aspects of BEPS related issues, please get in touch with us. The TPA Global network has alliance partners throughout the world, and the network can provide multi-disciplinary approach on today's critical transfer pricing challenges faced by multinational enterprises.
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