THE Department of Finance (DoF) said the Philippines has become a member of the Organisation for Economic Cooperation and Development (OECD)/G20 Inclusive Framework on Base-Erosion and Profit Shifting (BEPS).
The DoF said it hopes to “uphold tax fairness, protect the country’s tax base from aggressive tax avoidance schemes, and promote international tax cooperation.”
The BEPS initiative seeks to deter multinational companies from recognizing an outsized share of profit in low-tax countries, depriving high-tax jurisdictions of a fair share of revenue.
“The Inclusive Framework on BEPS is mandated to spearhead the effective implementation of the BEPS Project, including conducting peer reviews of the BEPS minimum standards, monitoring the other BEPS Actions, and leading the ongoing standard-setting work,” the DoF said.
The framework currently has 143 member jurisdictions and 14 observer organizations.
“The Philippines looks forward to the partnership that it will have with the OECD and the members of the Inclusive Framework on BEPS in ensuring tax fairness and transparency and pushing for international tax reforms that benefit all nations,” Finance Secretary Benjamin E. Diokno said.
“As a developing economy, it is essential that we ensure that the rules set are administratively feasible and secure equitable taxing rights,” he added. — Luisa Maria Jacinta C. Jocson