As published on tax-news.com, Wednesday 16 February, 2022.
The OECD/G20 Inclusive Framework on BEPS has published the outcome of more reviews into territories' preferential tax regimes and on tax dispute resolution through the Mutual Agreement Procedure.
The OECD said the findings demonstrate that countries are continuing to make progress on combating harmful tax practices and providing greater tax certainty to large taxpayers.
The findings of reviews into nine preferential tax regimes have been published, as part of the work on the implementation of BEPS Action 5. The number of regimes reviewed now stands at 317.
The Forum on Harmful Tax Practices, meeting last in November 2021, has concluded that two newly introduced regimes, introduced in Hong Kong (China) and Lithuania, are "not harmful." In addition, two regimes that were subject to scrutiny have been abolished in Mauritius, and Qatar amended its three preferential regimes to be in line with the standard and, therefore, these regimes are now considered "not harmful".
Costa Rica has made a commitment to amend recent legislative changes that were made to its free trade zone regime. Therefore, the status assigned to this regime is now "in the process of being amended".
One new regime is now under review in Armenia concerning free economic zones.
On tax dispute resolution, under BEPS Action 14, new Stage 2 peer review monitoring reports have been released for Brunei Darussalam, Curacao, Guernsey, Isle of Man, Jersey, Monaco, San Marino and Serbia. These look at progress the territories have made in implementing recommendations resulting from their Stage 1 peer review. According to the OECD, the findings are resoundingly positive. Highlights include: