OECD Provides Update on Review of Preferential Tax Regimes; Applies Substantial Activities Requirement for Low Tax Jurisdictions

The OECD has announced an update concerning the ongoing review of preferential tax regimes that may be considered harmful in relation to BEPS Action 5 (Countering Harmful Tax Practices). The reviews are conducted by the Forum on Harmful Tax Practices (FHTP) as part of the BEPS Inclusive Framework. The update includes that:

• 18 regimes where jurisdictions have delivered on their commitment to make legislative changes to abolish or amend the regime (Andorra, Curaçao, Hong Kong (China), Mauriti…