The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit sh...The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit shifting(BEPS).At the same time,countries became increasingly unhappy about international tax rules that left them unable to impose income taxes on companies earning profits by selling to customers inside their country without establishing a taxable presence there.The frustration led to unilateral responses that prompted the OECD to develop proposals to address this problem as well.The OECD’s proposals to reduce profit shifting and enhance taxing rights of sales destination countries evolved into what are now known as Pillar One and Pillar Two international tax reforms.This paper provides an overview of the operation of each of the Pillars and notes the limitations that prevent them from addressing the underlying causes of profit shifting and providing full taxing rights to sales destination jurisdictions.展开更多
This article provides an overview of the principles and policies adopted by the Hong Kong Special Administrative Region of the People’s Republic of China(Hong Kong)in implementing the Base Erosion and Profit Shifting...This article provides an overview of the principles and policies adopted by the Hong Kong Special Administrative Region of the People’s Republic of China(Hong Kong)in implementing the Base Erosion and Profit Shifting(BEPS)2.0 measures.It also argues that implementing the global minimum tax would not undermine Hong Kong’s region competitiveness and a minimum top-up tax in Hong Kong region is the logical response measure to safeguard Hong Kong’s region taxing rights.Finally,the article comments that MNEs will find non-tax attributes of a jurisdiction to be of greater importance in the post-BEPS 2.0 era.展开更多
文摘The confluence of several factors including government fiscal pressures and growing opportunities for tax minimization in a digital economy prompted the OECD to embark on a program to reduce base erosion and profit shifting(BEPS).At the same time,countries became increasingly unhappy about international tax rules that left them unable to impose income taxes on companies earning profits by selling to customers inside their country without establishing a taxable presence there.The frustration led to unilateral responses that prompted the OECD to develop proposals to address this problem as well.The OECD’s proposals to reduce profit shifting and enhance taxing rights of sales destination countries evolved into what are now known as Pillar One and Pillar Two international tax reforms.This paper provides an overview of the operation of each of the Pillars and notes the limitations that prevent them from addressing the underlying causes of profit shifting and providing full taxing rights to sales destination jurisdictions.
文摘This article provides an overview of the principles and policies adopted by the Hong Kong Special Administrative Region of the People’s Republic of China(Hong Kong)in implementing the Base Erosion and Profit Shifting(BEPS)2.0 measures.It also argues that implementing the global minimum tax would not undermine Hong Kong’s region competitiveness and a minimum top-up tax in Hong Kong region is the logical response measure to safeguard Hong Kong’s region taxing rights.Finally,the article comments that MNEs will find non-tax attributes of a jurisdiction to be of greater importance in the post-BEPS 2.0 era.
