On May 25th, member KPMG Macedonia held an M2M session to introduce interested members to the OECD’s Base Erosion and Profit Shifting (BEPS) Package and discuss its short and long term implications for MNCs working in Macedonia.
KPMG’s Koce Jovanov led the session, providing a brief historical overview of the BEPS, pointing out 15 measures created to help governments combat MNC tax avoidance. He explained that the measures focused on closing legal loopholes that have allowed MNCs to avoid taxes altogether or pay them in tax jurisdictions with the lowest rates, regardless of where profits were actually generated. He said the OECD package also aims to help governments protect companies from lengthy disputes between tax authorities in such cases. KPMG’s Katerina Mitevska also joined the conversation regarding local application of these measures, noting that intergroup transactions were already receiving increased attention from local authorities and that data exchange with other national tax authorities was advancing.