The OECD has published the results
from its latest peer review of preferential tax regimes. At its April 2021
meeting, the OECD’s Forum of Harmful Tax Practices presented new peer review
results for preferential tax regimes as part of its work on the BEPS Action 5
minimum standard on identifying and reviewing harmful tax practices.
The OECD highlights a number of areas of progress:
the Australian
Offshore banking regime which applied a 10% preferential tax rate has been
abolished, with transitional protections for existing participants;
the Philippines is to
abolish its regional operating headquarters regime as of 1 January 2022 (but
the regime is considered ‘potentially harmful but not actually harmful’ until
that date; and
the USA has
confirmed its intention to abolish the foreign derived intangible income (FDII)
regime, which has therefore been classified as ‘in the process of being
eliminated’.
In addition, various governments have made commitments to amend or
eliminate a number of potentially harmful regimes.
The OECD has published the results
from its latest peer review of preferential tax regimes. At its April 2021
meeting, the OECD’s Forum of Harmful Tax Practices presented new peer review
results for preferential tax regimes as part of its work on the BEPS Action 5
minimum standard on identifying and reviewing harmful tax practices.
The OECD highlights a number of areas of progress:
the Australian
Offshore banking regime which applied a 10% preferential tax rate has been
abolished, with transitional protections for existing participants;
the Philippines is to
abolish its regional operating headquarters regime as of 1 January 2022 (but
the regime is considered ‘potentially harmful but not actually harmful’ until
that date; and
the USA has
confirmed its intention to abolish the foreign derived intangible income (FDII)
regime, which has therefore been classified as ‘in the process of being
eliminated’.
In addition, various governments have made commitments to amend or
eliminate a number of potentially harmful regimes.
