BEPS stands for Base Erosion and Profit Shifting, referring to various tax avoidance schemes, typically involving different offshore jurisdictions.
In the classic sense, Base Erosion Profit Shifting occurs when a company’s profits are shifted from a high-tax country to another with low or zero tax rates, without conducting substantial economic activities in that jurisdiction.
For more information on BEPS, or Base Erosion and Profit Shifting, contact GLS Law Company for a personalized consultation. Our experts can analyze your company’s operations, allowing you to make necessary adjustments to comply with the anti-BEPS plan provisions.
There are many ways legal entities try to reduce their tax burden, including:
Such BEPS schemes are quite common in Ukraine and other countries. However, companies may face problems during tax audits, including potential fines.
Key nuances regarding BEPS include Ukraine gradually implementing various methods to combat tax evasion:
Consultations on BEPS are in demand because, in some situations, the tax burden of a foreign company may fall on the shoulders of the owner – a resident of Ukraine. In this case, the foreign company’s profit is considered your personal income, subject to taxation in our country.
According to Ukraine’s rules, BEPS is a problem that needs addressing. If your company is recognized as controlled, it must be declared. The CFC report should be filed annually, along with tax and financial statements.
Submit a request on the GLS Law Company website if you need consulting services related to Base Erosion and Profit Shifting. Our professionals will analyze your foreign firm’s compliance with new rules related to reporting, controlled foreign companies, etc.
They will also answer your questions regarding the cost of consulting services and the factors affecting prices.
You can also contact GLS Law Company experts via our contact phone numbers or popular messengers like Viber, WhatsApp, and Telegram.
BEPS (Base Erosion and Profit Shifting) is associated with the reduction of the tax base and the transfer of profits of companies to countries with lower taxes, often without carrying out activities there.
In Ukraine, methods such as the exploitation of legislative differences, ineffective anti-tax measures, transfer pricing and tax benefits are common.
Ukraine is actively implementing new rules, in particular strengthening transfer pricing norms and clarifying the status of permanent representative offices to counter BEPS.
GLS Law Company offers BEPS consultancy, including analysis of business operations and facilitation of adaptation to anti-BEPS initiatives.
Failure to comply with BEPS rules may result in fines and taxation of foreign company income as personal income of Ukrainian owners.
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