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Latest OECD progress report on harmful tax practices

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The OECD has published its 2018 progress report on preferential regimes, part of BEPS Action 5 on countering harmful tax practices.

The assessments in Harmful tax practices: 2018 progress report on preferential regimes, were conducted by the OECD’s forum on harmful tax practices (FHTP), comprising member jurisdictions of the inclusive framework. The latest assessment contains new conclusions on 57 regimes. These include:

  • 44 regimes where jurisdictions have delivered on their commitment to make legislative changes to abolish or amend the regime (Antigua and Barbuda, Barbados, Belize, Botswana, Costa Rica, Curaçao, France, Jordan, Macau (China), Malaysia, Panama, Saint Lucia, Saint Vincent and the Grenadines, the Seychelles, Spain, Thailand and Uruguay);
  • all IP regimes identified in the 2015 BEPS Action 5 report were found now to be ‘not harmful’ and consistent with the nexus approach, following the recent legislative amendments passed by France and Spain;
  • three new or replacement regimes were found ‘not harmful’ as they have been specifically designed to meet the Action 5 standard (Barbados, Curaçao and Panama);
  • four other regimes were found to be out of scope or not operational (Malaysia, the Seychelles and two regimes of Thailand), with two further commitments given to make legislative changes to abolish or amend a regime (Malaysia and Trinidad & Tobago);
  • one regime was found potentially harmful but not actually harmful (Montserrat); and
  • three regimes were found potentially harmful (Thailand).

The report also covers the resumption of application of the substantial activities factor to no or only nominal tax jurisdictions. See

Issue: 1429
Categories: News