The list of countries implementing BEPS-related guidance now tops 125 and is growing. The hard truth is that virtually any business with cross-border activities — including those that engage in cross-border digital commerce — must throw away outmoded notions of creating local taxable presences solely through physical presences and of easily and legally moving profits to low-tax jurisdictions.
The new US tax reforms represent the largest overhaul to the country’s tax code in more than three decades. They not only significantly lower US corporate tax rates, they change how multinationals are taxed on their non-US operations and their cross-border transactions. Understanding and following with the new rules will create challenges for multinationals. Those that fail to comply will risk financial and reputational damage, and those that fail to take advantage of new benefits will leave money on the table.