Base erosion and profit shifting

OECD releases decisions on 11 preferential regimes of BEPS Inclusive Framework Members

 

17/05/2018 – Governments are continuing to make swift progress in bringing their preferential tax regimes in compliance with the OECD/G20 BEPS standards to improve the international tax framework.


Today the Inclusive Framework released the updates to the results for preferential regime reviews conducted by the Forum on Harmful Tax Practices (FHTP) in connection with BEPS Action 5:

  • Four new regimes were designed to comply with FHTP standards, meeting all aspects of transparency, exchange of information, ring fencing and substantial activities and are found to be not harmful (Lithuania, Luxembourg, Singapore, Slovak Republic).
  • Four regimes were abolished or amended to remove harmful features (Chile, Malaysia, Turkey and Uruguay). 
  • A further three regimes do not relate to geographically mobile income and/or are not concerned with business taxation, as such posing no BEPS Action 5 risks and have therefore been found to be out of scope (Kenya and two Viet Nam regimes).

Eleven new preferential regimes are identified since the last update, bringing the total to 175 regimes in over 50 jurisdictions considered by the FHTP since the creation of the Inclusive Framework. Of the 175, 31 regimes have been changed; 81 regimes require legislative changes which are in progress; 47 regimes have been determined to not pose a BEPS risk; 4 have harmful or potentially harmful features and 12 regimes are still under review.

 

This update shows the determination of the Inclusive Framework to comply with the international standards. For the updated table of regime results, see www.oecd.org/tax/beps/update-harmful-tax-practices-2017-progress-report-on-preferential-regimes.pdf.

 

For more details, please refer to the interactive map presenting key indicators and outcomes of the OECD work on international tax matters and see an overview of the review process.

 

Media queries should be directed to Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration (+33 6 26 30 49 23), or Achim Pross, Head of the International Co-operation and Tax Administration Division (+33 6 21 63 27 67).

 

 

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