The OECD G20 Inclusive Framework on BEPS


About the Inclusive Framework on BEPS


In response to the call of G20 Leaders in Nov 2015, OECD and G20 members established an inclusive framework which allows interested countries and jurisdictions to work on an equal footing with OECD and G20 members in the next phase of the BEPS Project.


The Inclusive Framework on BEPS brings together over 141 countries and jurisdictions (as of Nov 2021) around the globe to collaborate on the implementation of the OECD/ G20 Base Erosion and Profit Shifting (BEPS) Package.


BEPS refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity. Although some of these gap-exploiting schemes used by the multinational corporations are illegal, most of them are not. However, this undermines the fairness and integrity of tax systems because businesses that operate across borders can use BEPS to gain a competitive advantage over enterprises that operate at a domestic level.  Moreover, when taxpayers see multinational corporations legally avoiding income tax, it undermines voluntary compliance by all taxpayers. See more here for BEPS[read]


Membership of the Inclusive Framework builds on the existing OECD Committee on Fiscal Affairs, to include interested countries and jurisdictions that commit to the comprehensive BEPS package and its consistent implementation. They participate in the decision-making plenary body, as well as all of the technical working groups. See the list of members and observers of the Inclusive Framework: [read]



Mandate of the OECD/G20 Inclusive Framework


The OECD/G20 Inclusive Framework's mandate is to:


  • With its inaugural meeting held in June 2016, the 100+ members of the Inclusive Framework on BEPS have moved quickly to take forward its mandate, including the peer reviews of the 4 BEPS minimum standards, monitoring of the other elements of the BEPS package, and the ongoing standard-setting work.


  • The Inclusive Framework is also working to provide guidance and support to jurisdictions and taxpayers on the implementation of the BEPS measures, including the top priority BEPS-related issues identified by developing countries. Partnering with other international and regional organisations where appropriate, a broad engagement process on the BEPS Project continues, to ensure that global support for this important agenda is maintained.


Minimun Standards


The 4 BEPS Minimum Standards to which the members of the Inclusive Framework must conform are:

  • BEPS Action 5 - Combat harmful tax practices [read]
  • BEPS Action 6 - Preventing the Granting of Treaty Benefits in Inappropriate Circumstances [read]
  • BEPS Action 13 - Guidance on Country-by-Country Reporting [read]
  • BEPS Action 14 - Making Dispute Resolution Mechanisms More Effective [read]


The following articles of the Multilateral Instrument (the MLI) come under the scope of the minimum standards of the OECD/G20 BEPS package:

  • Article 6 (Purpose of a Covered Tax Agreement),
  • Article 7 (Prevention of Treaty Abuse),
  • and Article 16 (Improving Dispute Resolution).

The Inclusive Framework (IF) members who choose to sign the multilateral instrument (the MLI) to meet the minimum standards, it is necessary for them to adopt the above-mentioned articles of the MLI to their covered tax agreements (the CTA's). However, becoming a party to the MLI is not mandatory even though the MLI is a powerful tool and a pool of resources in implementing the  BEPS minimum standard. The IF members can choose to negotiate with their treaty partners a bilateral treaty that includes the provisions, as specified under paragraph 19 in the Action 6 final report, to meet the minimum standard. The IF members can meet the minimum standards either by signing the MLI or signing bilateral treaties.





Monitoring Mechanisms


Monitoring implementation and the impact of the different BEPS measures is a key element of the work ahead. 


Members of the Inclusive Framework have developed a monitoring process for the four minimum standards as well as put in place the review mechanisms for other elements of the BEPS Package. The monitoring of the four minimum standards will ensure that all members, as well as jurisdictions of relevance, will comply with the standards in order to ensure a level playing field. Monitoring mechanisms are going to be developed in order to monitor jurisdictions’ compliance with their commitments. These mechanisms will ensure the effectiveness of the filing and dissemination of the Country-by-Country reports, as provided for by the review of the Country-by-Country standard by 2020. In regards to review mechanisms, they may differ depending on the Actions and will take into account countries' specific circumstances.


All countries and jurisdictions joining the framework will participate in this review process, which allows members to review their own tax systems and to identify and remove elements raising BEPS risks.




Peer Review Reports

  • Action 05 Harmful Tax Practices [read]
    • ​​Harmful tax practice - 2019 peer review results [read]
  • Action 06 Preventing Tax Treaty Abuse [read
    • ​Preventing tax treaty abuse - 2019 peer review report [read]
    • Preventing tax treaty abuse - 2020 peer review report [read]
    • Preventing tax treaty abuse - 2021 peer review report [read]
  • Action 13 Country-by-country Report [read]
    • ​CbC reporting - first peer review report [read]
    • CbC reporting - second peer review report [read]
  • Action 14 Mutual Agreement Procedure [read]
    • Mutual agreement procedure schedule of reviews [read]









See the updates

See full list of OECD/G20 Inclusive Framework members: [read]

All the OECD/G20 BEPS reports [read]

Progress Report July 2017 - June 2018 [read]