A strategy for “Deepening Developing Country Engagement in the BEPS Project” was released by the OECD. The stated aim of the new strategy is to ensure successful transplant of the BEPS provisions on an international scale, by strengthening developing countries involvement in the decision-making process and technical discussions.

Three elements form the basis of the Strategy:

1. Approximately 10 developing countries, who were involved in the early stages of the BEPS Project, will be invited to attend and participate in meetings of the CFA and its technical working groups.
2. Five regional networks of tax policy and administration officials will be established to coordinate ongoing and structured dialogue on BEPS issues among developing countries.
3. These regional networks will play a pivotal role in developing toolkits to support the practical implementation of BEPS measures, as well as other important issues for developing countries not included in the BEPS plan.

A report issued by the G20 Development Working Group identified that given the lower tax base of developing countries coupled with the fact that a greater share of their tax revenue is derived from corporate taxes when compared to developed countries, BEPS issues are problematic for developing countries. The African Tax Administration Forum and the Inter-American Centre for Tax Administration have a crucial role in leading discussion on BEPS issues for developing countries. A workshop is set to take place next month to allow developing countries the opportunity to engage with the Committee on Fiscal Affairs and its technical working groups on the BEPS Project.