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Mexico: 74% of companies are ready for BEPS

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El Economista
ENE 5, 2016 |

Almost a year after "Action Plan against erosion of the tax base and the transfer of benefits" (BEPS, for its acronym in English) comes into force, one in four multinational has said they won't comply with the set time, according to a survey by Thomson Reuters.

The results indicate that European companies are more prepared for the "Action Plan BEPS" than those of America and Asia. Among the key findings, he noted that 25% of respondents said that their companies do not comply with the first deadline proposed by the Organisation for Economic Co-operation and Development (OECD).

He added that European companies are mostly focused on the BEPS the rest of their peers in the world planning. Most companies headquartered in Europe (59%) are preparing for the BEPS, compared with 48% of companies in the Americas and Asia-Pacific.

"While many multinational corporations are diligently preparing for the BEPS, some are limited by scarce resources and others are taking a potentially dangerous wait and see approach," said Brian Peccarelli, world president of the business area Tax & Accounting business of Thomson Reuters.

The study by the firm covers the opinions of over 180 business executives and directors tax and transfer pricing in 35 countries, boarded more than 20 industries to learn how multinational companies are reacting and preparing for the "Plan BEPS action ".

Most respondents stated that the transfer pricing requirements, specifically the documentation and statements country by country, are their greatest concern among all the shares of BEPS.

Globally, it was estimated that 74% of multinationals will complete its country-by-country to the first maturity date, this is the December 31, 2017.

The document argued that the erosion of the tax base and the transfer of profits is a global problem, as such, requires global solutions. Therefore, there is need for greater international cooperation to combat such practices.