BEPS (Base Erosion and Profit Shifting)

Base Erosion and Profit Shifting (BEPS) refers to tax avoidance strategies used by multinational companies to shift profits from high-tax countries to low-tax jurisdictions. This practice reduces the tax base of countries, making it difficult for them to collect fair taxes. Governments and organizations like the OECD are working together to address BEPS by establishing regulations that ensure companies pay a fair share of taxes where economic activities occur. The goal is to create a fairer tax system worldwide and prevent the loss of tax revenues that affect public services and infrastructure.