Full Definition
BEPS (Base Erosion and Profit Shifting) is the OECD/G20 project closing loopholes in international tax rules. 15 Action Plans address: hybrid mismatches, treaty abuse, PE avoidance, CFC rules, transfer pricing, and digital economy taxation. Pillar Two introduces a 15% global minimum tax for groups with revenue >€750M, effective 2024 in most OECD countries. For SMEs and individuals, BEPS primarily matters via CFC rules and substance requirements for offshore structures.
Global Rates at a Glance
Ireland
12.5%
Corporate Tax Rate
Hungary
9%
Corporate Tax Rate
Singapore
17%
Corporate Tax Rate
United States
21%
Corporate Tax Rate
France
25%
Corporate Tax Rate
Germany
30%
Corporate Tax Rate
Switzerland
14.9%
Corporate Tax Rate
Key Facts for Expats & Digital Nomads
Corporate tax affects entrepreneurs who operate through a company. Low-tax jurisdictions (Ireland 12.5%, Hungary 9%, UAE Free Zones 0%) can dramatically reduce tax on retained profits. However, CFC rules in your country of personal residency may attribute the company's passive income directly to you.
Frequently Asked Questions
What is BEPS — Base Erosion and Profit Shifting?
The OECD framework preventing multinationals from exploiting tax gaps between countries. BEPS (Base Erosion and Profit Shifting) is the OECD/G20 project closing loopholes in international tax rules. 15 Action Plans address: hybrid mismatches, treaty abuse, PE avoidance, CFC rules, transfer pricing, and digital economy taxation. Pillar Two introduces a 15% global minimum tax for groups w.
Which countries have the lowest BEPS — Base Erosion and Profit Shifting?
0% corporate tax: UAE Free Zones, Cayman Islands, BVI, Bermuda. Among OECD jurisdictions: Ireland 12.5%, Hungary 9%, Bulgaria 10%. The OECD Global Minimum Tax sets a 15% floor for large multinationals (revenue >€750M).
How does BEPS — Base Erosion and Profit Shifting affect expats and digital nomads?
Corporate tax affects entrepreneurs who operate through a company. Low-tax jurisdictions (Ireland 12.5%, Hungary 9%, UAE Free Zones 0%) can dramatically reduce tax on retained profits. However, CFC rules in your country of personal residency may attribute the company's passive income directly to you.
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Disclaimer: This information is for educational purposes only and does not constitute tax advice. Tax laws change frequently. Consult a qualified tax professional before making any decisions.