UK and International Tax news
OECD and Harmful Tax Practices Update
Tuesday 1st February 2022
The OECD/G20 Inclusive Framework on BEPS has recently commented on progress being made in combatting harmful tax practices following ongoing reviews of preferential tax regimes.
At its November 2021 meeting, the Forum on Harmful Tax Practices (FHTP) agreed new decisions on nine preferential tax regimes as part of the implementation of the BEPS Action 5 minimum standard, bringing the total number of reviewed regimes since the start of the BEPS Project to 317.
The FHTP concluded on regimes as follows:
Two newly introduced regimes were concluded as “not harmful” (Hong Kong (China) and Lithuania).
Two regimes are abolished (Mauritius).
Qatar has 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, regime is now “in the process of being amended”.
Finally, one new regime is now under review (Albania).
Since the start of the BEPS Project, the FHTP has reviewed 317 regimes, and these are now classified as follows:
Not harmful – 65
Disadvantaged areas – 3
Out of scope – 38
Abolished – 108
Not harmful – 55
In the process of being eliminated/amended – 20
Under review – 13
Not operational – 3
Potentially harmful but not actually harmful – 9
Harmful – 3
If you would like further information on the above, please contact Keith Rushen on 0207 486 2378.