Base Erosion and Profit Shifting (BEPS) refers to tax avoidance strategies that multinational companies use to shift profits from high-tax jurisdictions to low-tax jurisdictions. This practice reduces the overall tax base of countries, leading to significant revenue losses for governments. To combat BEPS, the Organisation for Economic Co-operation and Development (OECD) developed a set of guidelines aimed at ensuring that profits are taxed where economic activities occur and value is created. These measures help countries protect their tax bases and promote fair taxation practices globally.