On July 2013, the Organization for Economic Co-operation and Development ("OECD") issued a plan consisting of 15 Actions to tackle the base erosion and profit shifting by multinational enterprises known as "BEPS". Action 13 of the plan requires a new transfer pricing documentation analysis, while Action 15 suggests the implementation of a multilateral agreement to apply anti-BEPS measures.
In compliance with Action 15, on November 24th 2016 the OECD presented a multilateral instrument to implement measures on tax treaties in order to fight BEPS. The text aims to establish measures to neutralize hybrid mismatch arrangements and prevent the artificial avoidance of a permanent establishment status.
This instrument was negotiated among more than 100 countries and will bring changes on more than 2000 tax treaties around the world. The signing ceremony will take place on June 2017. Furthermore, on December 5th 2016, in compliance with Action 13, the OECD published a guide for the implementation of the "Country-by-country report" on transfer pricing matters, which recommends tax authorities to grant multinational enterprises reasonable deadlines to file such reports.
It is worth mentioning that, despite such recommendation, in Mexico the obligation to file the "Country-by-country report" is already established in article 76-A of the Mexican Income Tax Law.
The attorneys of the tax practice group of this Firm will be pleased to discuss the scope and effects of all these measures in a given case.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
