A review of preferential tax regimes (BEPS Action 5) and peer review reports on the Mutual Agreement Procedure (MAP) (BEPS Action 14) have produced outcomes that have been approved by the OECD/G20 Inclusive Framework on BEPS.
Preferential tax regimes (BEPS Action 5)
New decisions on nine preferential tax regimes as part of the implementation of the BEPS Action 5 minimum standard were agreed at the November 2021 meeting of the Forum on Harmful Tax Practices. The changes include:
- Two newly introduced regimes, Hong Kong (China) and Lithuania, were concluded as “not harmful”.
- Two regimes in Mauritius were abolished.
- Qatar amended its three preferential regimes to be in line with the standard and therefore, these regimes are “not harmful (amended)”.
- Costa Rica made a commitment to amend recent legislative changes that were made to its Free Trade Zone regime and therefore, the regime is now “in the process of being amended”.
- Albania (a new regime) is now under review.
Mutual Agreement Procedure (MAP) (BEPS Action 14)
The OECD published Stage 2 peer review monitoring reports of the BEPS Action 14 minimum standard evaluating the progress made by Brunei Darussalam, Curaçao, Guernsey, Isle of Man, Jersey, Monaco, San Marino, and Serbia in implementing recommendations resulting from their Stage 1 peer review. The OECD will continue to publish Stage 2 peer review reports in batches in accordance with the BEPS Action 14 peer review assessment schedule.
For more information read the OECD’s update.
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