Latest BEPS report on assessment of 53 preferential tax regimes

Nov 19, 2018

The OECD recently published a progress report from the Inclusive Framework on BEPS which covers the assessment of 53 preferential tax regimes. This report forms part of the ongoing implementation of Action 5 under the BEPS initiative. Action 5 deals with harmful tax practices with a focus on improving transparency, including compulsory spontaneous exchange on rulings related to preferential regimes, and on requiring substantial activity for preferential regimes, such as IP regimes.

The latest batch of assessments includes:

  • 18 regimes where jurisdictions have delivered on their commitment to make legislative changes to abolish or amend the regime (Andorra, Curaçao, Hong Kong (China), Mauritius, San Marino and Spain).
  • A number of new or replacement regimes that have been specifically designed to meet Action 5 standard (for example Lithuania, Mauritius and San Marino).
  • New commitments to make legislative changes to amend or abolish a further 10 regimes, by Aruba, Australia, Maldives, Mongolia, Montserrat, the Philippines and Saint Lucia.
  • An additional 17 regimes that have been brought into the FHTP review process (Aruba, Brunei Darussalam, Curaçao, Gabon, Greece, Jordan, Kazakhstan, Malaysia, Panama, Paraguay, Saint Kitts and Nevis and the United States).
  • A number of regimes have been found to be out of scope, not yet operational or were already abolished or without harmful features (for example Aruba, Kenya, Paraguay).