Middle-market businesses in the US (those with revenues between $50m and $1bn) expect to be ‘significantly impacted’ by the OECD’s BEPS action plan, according to a survey of 494 international business leaders carried out by US accounting and consulting firm RSM US LLP. The survey showed 72% of these businesses anticipate a 5% to 10% increase in effective tax rates as a result of BEPS, while 92% also expect increased compliance costs.
Ramon Camacho, international technical tax lead at Washington National Tax for RSM US, said: ‘While BEPS should level the playing field and perhaps curtail corporate tax inversions, companies of all sizes with international business need to begin to prepare for the tax, compliance and business issues coming their way.’
However, despite the increased costs and likely business challenges, companies broadly support BEPS, with 69% regarding a global taxation standard as necessary. 61% of respondents were not convinced that BEPS will ensure tax is paid where profits are created. Only 35% were confident it will succeed in levelling the international playing field. See www.bit.ly/1Oaca5S.
Middle-market businesses in the US (those with revenues between $50m and $1bn) expect to be ‘significantly impacted’ by the OECD’s BEPS action plan, according to a survey of 494 international business leaders carried out by US accounting and consulting firm RSM US LLP. The survey showed 72% of these businesses anticipate a 5% to 10% increase in effective tax rates as a result of BEPS, while 92% also expect increased compliance costs.
Ramon Camacho, international technical tax lead at Washington National Tax for RSM US, said: ‘While BEPS should level the playing field and perhaps curtail corporate tax inversions, companies of all sizes with international business need to begin to prepare for the tax, compliance and business issues coming their way.’
However, despite the increased costs and likely business challenges, companies broadly support BEPS, with 69% regarding a global taxation standard as necessary. 61% of respondents were not convinced that BEPS will ensure tax is paid where profits are created. Only 35% were confident it will succeed in levelling the international playing field. See www.bit.ly/1Oaca5S.
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