OECD Base Erosion and Profit Shifting (BEPS)

OECD Base Erosion and Profit Shifting (BEPS) refers to tax avoidance strategies that multinational companies use to shift profits from high-tax jurisdictions to low-tax or no-tax locations. This practice reduces the tax base of countries where the profits are actually generated, leading to significant tax revenue losses. The OECD provides guidelines and recommendations to help governments combat BEPS, ensuring that companies pay fair taxes according to where their economic activities occur. The goal is to create a fairer and more transparent international tax system that protects tax bases worldwide.