UK and International Tax news

OECD Publishes Latest Peer Review Results on Preferential Tax Regimes

Wednesday 18th February 2026

The latest peer review results on preferential tax regimes and no or only nominal tax jurisdictions highlight continued progress by jurisdictions worldwide to ensure their tax systems do not enable harmful tax practices and enhance transparency, in line with the BEPS Action 5 minimum standard.

During its meeting in November 2025, the OECD Forum on Harmful Tax Practices (FHTP) reached new conclusions on four regimes and completed its fifth annual monitoring of the substantial activities requirements in no or only nominal tax jurisdictions, as part of the implementation of the BEPS Action 5 minimum standard on harmful tax practices.

Three newly introduced regimes were examined, with two assessed as not harmful, being Ireland (participation exemption for certain foreign dividends), and Peru (framework law on special economic zones). The third was found to have been abolished, being Fiji (original ICT business investment activities). Another regime that had previously been under review was confirmed as abolished, also Fiji (export income deduction regime).

Results of the FHTP’s fifth annual monitoring of the substantial activities requirements in no or only nominal tax jurisdictions indicate that the majority of these eleven jurisdictions are fully compliant with the BEPS Action 5 minimum standard. However, focused monitoring will be undertaken for two jurisdictions (Anguilla and the Turks and Caicos Islands), where substantial improvements are required in specific areas.

These results also include the FHTP’s review of legislation, regulations and guidance issued since the June 2019 meeting.

Since the launch of the BEPS Project, the FHTP has reviewed a total of 326 preferential regimes, with almost 40% of those regimes being abolished.

If you would like more detail on the above, please contact Keith Rushen on 0207 486 2378.

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