Panama BEPS Plan
Panama City, April 17, 2023
The BEPS Plan is a response to the challenges posed by multinational companies that use aggressive tax planning strategies to reduce their tax burden. Transfer pricing documentation is an important part of the BEPS Plan, as it provides evidence of the arm’s length nature of intragroup transactions and helps prevent tax evasion. Transfer pricing documentation also helps ensure that companies pay the correct amount of tax in the correct jurisdictions. By providing detailed information about transactions, companies can ensure that their tax obligations are properly met.
The BEPS Plan (base erosion and profit shifting) is an initiative of the G20 and the Organization for Economic Cooperation and Development (OECD) to deal with tax avoidance strategies used by companies and multinationals to minimize their taxes transferring its benefits to low tax jurisdictions. This plan has been widely accepted by countries around the world and has become a reference to combat tax avoidance.
Transfer pricing documentation is an important part of the BEPS Plan. Transfer pricing documentation refers to the information that taxpayers must provide to the tax authorities to demonstrate that the prices of goods and services exchanged between related parties are adequate and in accordance with the arm’s length principle. The BEPS Action Plan requires taxpayers to provide robust and transparent transfer pricing documentation to demonstrate that transaction pricing is in line with the arm’s length principle.
For more information, contact us at rhurtado@tpconsulting.com or by phone (507) 203-6771 | (507) 203-6770 | (507) 221-8664.
