The OECD has issued an interim report on the impact of BEPS on developing countries. A full report will issue in September setting out how developing countries should meet the challenges of the most relevant BEPS issues they face.

The conclusions of the interim report suggest that BEPS has the potential to considerably impact on domestic resource mobilisation in developing countries. Part 2 of this report will confirm which of the 15 actions included in the Action Plan are of most relevance to developing countries and will discuss other BEPS-related issues not in the Action Plan, including wasteful tax incentives, the lack of comparability data in developing countries and tax avoidance through the indirect transfer of assets located in developing countries. The report will also discuss capacity building initiatives that, in the developing country context, must go hand-in-hand with regulatory measures.

For full details of the current report, see the OECD’s website.