PERU

Signatories of the Inclusive Framework on BEPS (Base Erosion and Profit Shifting) signed an agreement in Paris at an OECD Meeting to “address the Tax Challenges Arising from the Digitalization of the Economy”. The aim is to reach a more complete agreement by the end of 2020.

The Inclusive Framework involves 137 countries: from Latin America, Argentina, Brazil, Chile, Colombia, Costa Rica, Honduras, Mexico, Panama, Paraguay, Peru and the Dominican Republic are participating in the Framework. Access the list of the member countries by clicking here.

The agreement covers automated digital services, including search engines, streaming, trading platforms and digital cloud services. 

Participants agreed to continue the negotiation of new tax rules on the basis of a “unified approach”, so as to establish a common framework on where, or in relation to what, these companies should be taxed and how much. The objective is for these companies to contribute to the economies where they provide their services and for this taxation to allow for a profitable business scheme.

On the basis of this agreement, the OECD is expected to produce a report for consideration in the framework of the G20. Member countries will continue working on these issues in the coming months to draw up a document containing the technical parameters agreed by July.