Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Singapore is part of the BEPS Project led by the Organisation for Economic Co-operation and Development (OECD) for the global implementation of an action plan that will address BEPS issues in a coordinated and comprehensive manner across countries and jurisdictions.
DBS welcomes and supports the consistent implementation of measures under the BEPS Project.
DBS has embedded procedures to ensure that cross-border transactions with related parties adhere to the arm's length principle.
We ensure that transfer pricing outcomes are consistent with the functional activities undertaken, risk assumed and assets utilised in each tax jurisdiction. DBS implements an internal transfer pricing framework, which codifies the governance, reporting structure, operational implementation and tax principles around cross-border transactions, to ensure that all such transactions are accounted for in a consistent and principled manner.
In response to the implementation of Action 13 of the BEPS Project, DBS will ensure that the relevant information required for the Country-by-Country reporting will be provided annually to the tax authorities from 2017 and after.