Base Erosion and Profit Shifting (BEPS) represents one of the most significant overhauls in international tax policy in decades. At its core, BEPS targets aggressive tax planning strategies used by multinational enterprises (MNEs) to artificially shift profits to low–tax jurisdictions, eroding the tax bases of higher–tax countries.

With governments losing an estimated $100–240 billion annually (OECD) due to these practices, the OECD and G20 launched the BEPS Project in 2013. This initiative has reshaped global company structuring, forcing businesses to adopt more transparent and fair tax practices.