Legislative Precision: India's BEPS Response And International Tax Reforms

The emergence of the digital economy and its consequential impact on the conventional tax systems led the OECD to address the issue of BEPS, which refers to the strategies Multinational Enterprises ('MNEs') used to reduce their tax liabilities by shifting profits to law-tax jurisdictions. As a participant in the OECD Inclusive Framework on BEPS, India has instituted various legislative modifications to harmonize its tax statutes with the BEPS action plans, stressing its commitment to international standards. This article examines the specific amendments made in the Indian tax laws in response to the BEPS action plans and their impact on the Indian taxation landscape.

For more on the 15 BEPS action plans, please refer to our Insight titled 'BEPS Actions – A Concise Summary'.