BEPS / OECD & Global Mobility Tax Advisory — What to Get Right Before You Start
Base Erosion and Profit Shifting (BEPS) compliance and global mobility taxation sit at the intersection of two of the most heavily scrutinised areas in cross-border tax today: multinational groups documenting that profit is taxed where value is actually created, and individuals moving across borders whose residency, employment income, and social security position can trigger tax exposure in more than one country simultaneously. At PNPC Global, we advise Indian subsidiaries of multinational groups on Country-by-Country Reporting (CbCR), Master File obligations, and BEPS-aligned transfer pricing documentation — and we advise employers and expatriate individuals on POEM, Section 6 residency, split-year taxation, and DTAA relief when people move between India, the UAE, and other jurisdictions.
What You're Really Buying
BEPS refers to the OECD/G20 Base Erosion and Profit Shifting Action Plan — a 15-Action framework, finalised in 2015 and continuously updated since (including the 2021 Two-Pillar Solution on the digital economy and a global minimum tax), designed to stop multinational groups from artificially shifting profits to low-tax or no-tax jurisdictions where little real economic activity occurs. India was an active participant in the OECD/G20 Inclusive Framework and has domesticated several BEPS Actions into Indian law: Action 13 (transfer pricing documentation and Country-by-Country Reporting) is implemented through Sections 92D, 92E, and the specific CbCR/Master File provisions under Sections 286, 92D(4) and Rules 10DA/10DB of the Income-tax Rules 1962 (these references are to the Income-tax Act, 1961, which governs income up to FY 2025-26; from tax year 2026-27 the Income-tax Act, 2025 and the Income-tax Rules, 2026 apply with renumbered sections and forms — confirm the equivalent provision); Action 6 (treaty abuse prevention) is reflected in India's adoption of the Multilateral Instrument (MLI), which modifies many of India's bilateral DTAAs with a Principal Purpose Test; Action 1 (digital economy) is reflected historically in India's Equalisation Levy framework (the 2% e-commerce levy was withdrawn effective 1 August 2024 and the 6% levy on online advertising services from 1 April 2025, while the underlying Significant Economic Presence (SEP) test under Section 9(1)(i) Explanation 2A of the 1961 Act — confirm the corresponding provision of the Income-tax Act, 2025 — continues to apply as India's domestic nexus rule pending global Pillar One consensus). For Indian entities that are part of a multinational group with consolidated group revenue above the prescribed threshold, this translates into three concrete filings: the Master File (Form 3CEAA, in two parts depending on group size and nature of international transactions), the Country-by-Country Report (Form 3CEAD, filed by the Ultimate Parent Entity or an Alternate Reporting Entity), and the CbCR intimation (Form 3CEAC, notifying the tax department which entity in the group will file the CbCR and in which jurisdiction). Under the Income-tax Rules, 2026, which apply from tax year 2026-27, these forms are renumbered as Form 56 (Master File, formerly 3CEAA), Form 59 (CbCR, formerly 3CEAD) and Form 58 (intimation, formerly 3CEAC); confirm the current form before filing.
For the full scope, current process and what PNPC includes, see the dedicated BEPS / OECD & Global Mobility Tax Advisory service page.
When You'd Need This
- Your company is part of a multinational group with consolidated group revenue at or above the CbCR threshold prescribed under Rule 10DB, and the Indian constituent entity needs to determine its Master File and CbCR intimation obligations
- Your group's Ultimate Parent Entity or Alternate Reporting Entity is based outside India and you need to confirm whether the Indian entity has a standalone CbCR filing obligation or can rely on the parent's filing in a jurisdiction with an exchange-of-information agreement with India
- You are posting an Indian employee to the UAE, or bringing a foreign national employee into India, and need clarity on which country taxes the salary, how DTAA relief or foreign tax credit applies, and what the assignment structure means for payroll withholding
- Your foreign group company has employees who visit India frequently for client work, technical support, or oversight, and you are concerned about Permanent Establishment exposure under BEPS Action 7 principles as applied by Indian tax authorities and courts
What This Doesn't Cover
- Your business has no group-level cross-border related-party transactions and no employees crossing borders — routine domestic transfer pricing (if any) and standard payroll compliance are the relevant services, not BEPS/CbCR advisory
- You are a standalone Indian company with no foreign parent, no foreign subsidiary, and no group consolidation above you — CbCR and Master File thresholds apply at the multinational group level and will not be triggered
- You need a one-off Form 145/146 (Form 15CA/15CB for remittances up to 31 March 2026) for a single foreign remittance with no recurring cross-border employment or group-structure element — that is a narrower remittance-certification engagement
Questions We're Actually Asked
What exactly is BEPS, and why does an Indian subsidiary of a foreign group need to worry about it?
BEPS stands for Base Erosion and Profit Shifting — the OECD/G20 project to stop multinational groups from shifting profits to low-tax jurisdictions disconnected from where real business activity occurs. India adopted several BEPS Actions into domestic law, most directly Action 13 (transfer pricing documentation and Country-by-Country Reporting, under Sections 92D and 286 of the Income-tax Act, 1961 and Rules 10DA/10DB of the Income-tax Rules, 1962 for FY 2025-26 and earlier, with renumbered provisions under the Income-tax Act, 2025 and Income-tax Rules, 2026 from tax year 2026-27). An Indian subsidiary of a multinational group does not need to be large itself to have obligations — the CbCR threshold is measured at the consolidated group level, so even a small Indian entity within a large global group can trigger a Master File and CbCR intimation requirement.
What is the CbCR threshold, and does it apply to us?
The Country-by-Country Report obligation applies to a group where the consolidated group revenue for the preceding accounting year exceeds the threshold prescribed under Rule 10DB of the Income-tax Rules. The Master File's detailed Part B similarly applies based on the group's consolidated revenue and international transaction value thresholds under Rule 10DA. Because these thresholds are prescribed in the Rules and can be revised, PNPC checks the current threshold figures against your group's actual consolidated financials for the relevant year rather than relying on a remembered number from a prior engagement.
What is Form 3CEAA, and does every group entity need to file the full Master File?
Form 3CEAA has two parts. Part A is a basic disclosure that every constituent entity of an international group must file, essentially regardless of size. Part B — the detailed Master File covering the group's business description, intangibles, intercompany financing, and functional profile — is only required where the group crosses the consolidated revenue and international-transaction-value thresholds under Rule 10DA. A common error is filing only Part A when the group has actually crossed into Part B territory, or over-filing Part B when it was not required. PNPC checks the current year's group figures against the applicable thresholds before scoping the filing.
Where PNPC Fits In
Talk to a PNPC Chartered Accountant before your next cross-border secondment, hire, or group filing deadline — not after a CbCR intimation deadline has been missed or a PE query lands on your desk. One team across India and the UAE, not a handoff between disconnected advisers.
PNPC Global has advised Chennai, Bangalore and Hyderabad businesses since 1986. Explore the full Income Tax practice for related services, or go straight to the BEPS / OECD & Global Mobility Tax Advisory page for specifics.
Specific rates, fees, thresholds and deadlines are set by the relevant authority and change over time — this article deliberately does not quote figures that could go stale. Confirm current numbers directly with PNPC or the official source before you act.