All members agree to a co-ordination approach in implementing BEPS
Wednesday, 22/02/2017 20:59 (GMT+7)
(CPV) - In the framework of APEC Finance and Central Bank Deputies meeting on February 23rd 2017, Ministry of Finance (General Department of Taxation) has organized a side-workshop on “BEPS Action Plan Deployment in APEC” on February 22nd 2017 in Nha Trang city, Khanh Hoa province.
The objectives of the workshop is to discuss opportunities and challenges, and share practical experience, on the adoption and implementation of Base Erosion Profit Shifting (BEPS) measures for Asia Pacific Economic Cooperation (APEC) members, regarding BEPS actions from 2016 - 2017 onwards, and concentrating on the BEPS four minimum standards/the Inclusive Framework (IF), and the Multilateral Instrument (MLI).
All APEC members are aware of the significance of Base Erosion and Profit Shifting phenomina and its implications to fairness and effectiveness of the international tax systems and governments around the globe. This workshop has pointed out the main challenges faced by APEC members and possible BEPS solutions that could be used to address these issues.
Source: tapchitaichinh.vn
The Inclusive Framework and the Multilateral Instrument were the two main pillars of this workshop.
For the Inclusive Framework, according to statistics, 76% of APEC economies are members of the framework. It is clear that membership of the Inclusive Framework provides opportunities for non-OECD or G20 members to take part in a very significant international effort to counter cross-border tax avoidance. However, participation in the IF is very resource intensive and it depends on each member’s policy objectives and readiness of domestic legislations.
The Multilateral Instrument has been designed to facilitate the swift modification of the network of existing bilateral tax agreements to implement the tax treaty related measures developed by BEPS initiative. It has been shown that 40% of total DTAs are accounted for by APEC members’ DTAs and 19% of APEC economies have been confirmed for MLI signing ceremony in June 2017. This is encouraging information and a positive foundation for the implementation of BEPS in 2017 APEC Action Plan.
The result of this workshop is that all members agree to a co-ordination approach in implementing BEPS. A 2017 work plan to work further together with specific measures/activities have been agreed and included in the report to APEC Finance and Central Bank Deputies meeting on 23rd Feb and in the APEC Finance Ministers Meeting in October 2017./.