endobj After 2 … ��e��y �y����ׯ��~�����=���W0Q�I\�dz~d�%�.3Q�m����(ˎ? double non-taxation, double ANNEXURE 2 DAVIS TAX COMMITTEE: SECOND INTERIM REPORT ON BASE EROSION AND PROFIT SHIFTING (BEPS) IN SOUTH AFRICA SUMMARY OF REPORT ON ACTION 2: NEUTRALISE THE EFFECTS OF HYBRID MISMATCH ARRANGEMENTS Action 2 of the BEPS Action Plan focuses on neutralizing the tax benefits of hybrid mismatch arrangements. Action Plan 2 of the 2013 OECD Report on “Base Erosion and Profits Shifting (BEPS) 18 recommends that countries should develop tax treaty rules regarding the design of domestic rules to neutralise the effects of (e.g. Action 1: Addressing the Tax Challenges Raised by the Digital Economy. OCED has come out with several action plan towards combating Base Erosion and Profit Shifting. !7ף��H(�� �[����������4���Gb |p��}�?�����~d�)�7��>p p�>���� >��g���U�B��,S�.�`���:�R�dXI n~ OECD BEPS Action Plan: Moving from talk to action in the Americas The OECD Action Plan on BEPS, introduced in 2013, set 15 specific action points to ensure international tax rules are fit for an increasingly globalized, digitized business world and prevent international companies from paying little or no tax. ��c����Q5����>�MQɚ�OW�=;L����Xt$\��Ӂa����CdL�\%k�������F�"]fc�^���F7��C9��/����STyQ'K]}_�^]g���nn�s%+�J�"�8O$��A'q^��A�i� ���IU����#������8*���H�|��e. <> GLOBAL BEPS REPORT 2018: IMPACT OF BEPS ACROSS TAXAND JURISDICTIONS MARCH 2018. %PDF-1.5 endobj <>>> Since the 2015 Action 1 Report was published, an interim report was issued in 2018 that provided an update on the OECD’s analysis of the tax challenges of digitalization. Executive summaries 2. 2015 PM International Cooperative PM International PM International provides no client services and is a Swiss entity with which the independent member ffrms of the PM network are afffliated Local country responses: 4. 2 | Special report on BEPS. <> Among several action plan, Action 2 report recommends measures to neutralise the Hybrid mismatch arrangement I have attempted to summarise the same in The OECD recently released an updated version of BEPS Action 2 Report titled “Neutralising the tax effects of branch mismatch arrangements” As indicated by the OECD: “This report set out recommendations for domestic rules that put an end to the use of hybrid entities to generate multiple deductions for a single expense or deductions without … <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Appendix 1 –BEPS action points 2 Argentina Colombia Indonesia Malta Portugal Switzerland Austria Cyprus Ireland Mauritius Romania Turkey Belgium Denmark Italy Mexico Russia UK