OECD guidance on substantial activities

Nov 04, 2019

The OECD has released guidance relating to “substantial activities” in jurisdictions with zero or only nominal tax rates. This is part of BEPS Action 5 to curb harmful tax practices and is to ensure that substantial activities must be performed in respect of business activities. Tax jurisdictions with zero or only nominal tax rates are required to spontaneously exchange information on the activities of certain resident entities. This guidance covers timelines for the exchanges, the international legal framework and clarifications on the key definitions. If you are interested in learning more, read the OECD press release.