The OECD today announced that Malaysia has joined the “Inclusive Framework on BEPS,” which is a group of countries that have pledged to implement measures aimed at preventing tax avoidance designed by OECD and G20 countries in the 2015 base erosion profit shifting (BEPS) project, reports MNE Tax.
Malaysia is the 94th jurisdiction to join the group.
The commitment means that Malaysia has agreed to adopt BEPS “minimum standards” on tax treaty shopping; implement country-by-country reporting for transfer pricing; limit benefits of any intellectual property or other preferential tax regimes; and fully implement the mutual agreement procedure in its tax treaties. Malaysia must also pay a fee to participate.
In return, Malaysia will be permitted to work alongside OECD and G20 countries on an equal footing to ensure widespread adoption of the BEPS minimum standards, which will be subject to a peer review process; participate in some remaining BEPS project international tax standard setting work; participate in ongoing data gathering on the tax challenges of the digital economy; and work on measuring the impact of BEPS.