Budapest, December 22 (MTI) – Hungary has decided to join the OECD’s Base Erosion and Profit Shifting (BEPS) framework that aims to limit tax evasion and aggressive tax optimisation by big multinational corporations, the economy ministry announced on Thursday.
So far 50 countries have signed the agreement under which OECD tax authorities will share country-by-country reports on transfer pricing standards, the ministry said in a statement.
Under the deal, the tax authorities of OECD member states will regularly share with each other information on certain multinational corporate groups with annual revenues of over 750 million euros. The data that will automatically be exchanged each year will include staff numbers, revenue, income tax and income distribution.
By determining the arm’s length price, tax authorities will be able to identify risks related to tax base reduction and profit reallocation. They will also be able to calculate the taxes the given companies owe, the ministry added.
On the basis of these data, tax authority NAV able to more accurately identify the companies that need to be inspected.
The agreement still has to be ratified by parliament, which it is likely to do at the beginning of 2017, the ministry said, noting that the deal is also applicable to 2016.