Tag: Preferential tax regimes

Preferential Tax Regimes - Harmful Tax Practices

Preferential Tax Regimes – Harmful Tax Practices

On 13 November 2018, the Inclusive Framework on BEPS approved updates to the results of reviews of preferential tax regimes conducted in connection with BEPS Action 5. The data below presents the conclusions of the work on regime reviews. The results are a consolidated update of the regimes reported in Harmful Tax Practices – 2017 Progress Report on Preferential Regimes. Countries with harmfull tax practices – preferential tax regimes – are defined based on the following factors: Where no or low effective tax rates (or negotiable tax rates or bases) are imposed on income from highly mobile assets and activities Where the low tax regime is ring-fenced (separated) from the domestic economy Where there is no transparancy and no exchange of information with other jurisdictions, eg. secrecy provisions Where there is no requirement of substantial economic activities/substance The Inclusive Framework on BEPS has decided to resume the application of the substantial activities requirement for no or only nominal tax jurisdictions ... Continue to full case
OECD: Report on harmful tax practices, 16 October 2017

OECD: Report on harmful tax practices, 16 October 2017

The OECD report on harmful tax incentives provides details on reviews of 164 preferential tax regimes. Some preferential tax regimes are considered harmful – where these encourage the erosion of other jurisdictions’ tax bases. All 102 members of the BEPS Inclusive Framework have committed to ensuring that any regimes offered meet the criteria that have been agreed as part of BEPS Action 5. Crucially, this includes a requirement that taxpayers benefiting from a regime must themselves undertake the core business activity, ensuring the alignment of taxation with genuine business substance. Of the 164 regimes reviewed in the last twelve months: * 99 require action. * For 93 of these 99 regimes, the required changes have already been completed or initiated by Inclusive Framework members, * 56 regimes do not pose a BEPS risk, * 9 regimes are still under review, due to extenuating circumstances such as the impact of the recent hurricanes on certain Caribbean jurisdictions. OECD 2017-progress-report-on-preferential-regimes ... Continue to full case