Tax Base Erosion and Profit Shifting

Home Tax Base Erosion and Profit Shifting

Tax base erosion and profit shifting (BEPS) through aggressive tax avoidance deprives countries of revenues to fund critical programs and services, including health care, infrastructure, and environmental management.

Resource-rich developing countries face unique BEPS risks and tax administration challenges that can prevent effective revenue collection in the mining sector and divert revenue from host governments.

With a long list of Sustainable Development Goals to fund and the COVID-19 pandemic straining public resources, it is more important than ever for resource-rich governments to ensure existing and future mining projects fully contribute to public finances for long-term economic, environmental, and social sustainability.

Securing Shared Financial Benefits from Mining

To uphold our cornerstone Mining Policy Framework, the Secretariat’s BEPS in Mining Program fosters governments’ ability to build and administer mining tax systems to secure their fair share of revenues from their country’s mineral resources.

Our capacity building, technical assistance, events, and publications improve governments’ tax policies, legislation, and tools to:

  • Enhance capacity to detect and mitigate BEPS risks to bolster financial benefits from mining
  • Promote sound tax policies and administration for the mining sector
  • Collect their fair share of mining revenue to support social programs and other government priorities
  • Adapt to a fast-changing world with tax systems that recognize the rapidity of technological change
  • Better understand the mining sector and craft policy regimes to address gaps in existing national and international tax rules to maximize revenues from mining to promote sustainable development.

Rethinking Financial Contributions from Mining

The Future of Resource Taxation is a project to rethink how developing countries benefit financially from their mineral resources.

The project is a dedicated dialogue for governments, civil society, and industry to exchange ideas on how the current system of mining taxation can be improved and identify new, innovative fiscal options for resource-rich countries to maximize the returns from their mineral wealth.

This project is delivered in partnership with the African Tax Administration Forum.

 

The BEPS in Mining Program is funded by the Government of the United Kingdom, the Ford Foundation, and the Swiss Agency for Development and Cooperation.

Additional Resources

Mining Fiscal Tools Should Offer Simplicity, Participation, Fairness, and Compensation

Governments want innovative and effective fiscal policies for the mining sector that offer simplicity, participation, fairness, and compensation.

The Future of Mining Taxation

A webinar to discuss how countries can adapt their mining tax policies to respond to climate change, automation, and the global tax justice movement.

Financial Benefits from the Lithium Industry: Opportunities and challenges for Argentina

The half-day event included two panel discussions about financial benefits and the lithium sector focusing on opportunities and challenges at the national and provincial levels.

The Future of Resource Taxation: 10 policy ideas to mobilize mining revenues

The mining sector is at the nexus of important global phenomena: climate change and the push to transition to low-carbon energy, the development of new technologies affecting labour mar

The OECD–G20 International Tax Reforms and Mining: Implications for IGF members

Many multinational mining companies will be subject to the new global tax rules and governments should understand the new rules may interact with their domestic fiscal regime for extrac