The Former Yugoslav Republic of Macedonia (FYROM) becomes the 117th jurisdiction to join the Inclusive Framework on BEPS (IF).
IF was developed after a call from G20 Leaders to the OECD to develop a more inclusive framework with the involvement of interested non-G20 countries and jurisdictions. This was following the release of the BEPS package in 2015.
FYROM’s involvement with the IF aims to facilitate the implementation of agreed minimum standards, as well as the peer review processes and will provide the FYROM with further support.
The IF is engages developing countries with the international tax agenda as they have a heavy reliance on corporate income tax, particularly from multinational enterprises.
Monitoring, review and standard setting
The developed IF allows interested countries and jurisdictions to work with OECD and G20 members in order to develop standards on BEPS related issues and review and monitor the implementation of the whole BEPS package.
Members of the inclusive framework will develop a monitoring process for the four minimum standards which include;
• Action 5: Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance
• Action 6: Preventing the Granting of Treaty Benefits in Inappropriate Circumstances
• Action 13: Transfer Pricing Documentation and Country-by-Country Reporting
• Action 14: Making Dispute Resolution Mechanisms More Effective
Additionally members will be able to put in place the review mechanisms for other elements of the BEPS package.
Membership to the BEPS
In order to become a member, the country or jurisdiction interested will need to commit to the BEPS package and pay an annual membership fee.
The measures aim to protect tax bases such as the development of provisions to avoid treaty abuse and to introduce country-by-country reporting, for which the BEPS package provides the minimum standards.
By Mishelle Thurai