OECD notes progress on harmful tax practices work

The OECD has published new results on preferential tax regimes noting that tax jurisdictions continue making progress on implementing the international standard under BEPS Action 5 to address harmful tax practices.

At its April 2023 meeting, the Forum on Harmful Tax Practices (FHTP) reached new conclusions on five regimes as part of the implementation of the BEPS Action 5 minimum standard on harmful tax practices.

The results are as follows:

  • three regimes are abolished (one for Aruba and two for San Marino);
  • one regime was amended to be in line with the standard and is now not harmful (Jordan); and
  • one regime is now in the process of being amended (Albania).

Since the start of the BEPS Project tackling international tax avoidance, the OECD has reviewed 319 preferential regimes.

The OECD will soon commence its annual monitoring of substantial activities requirements for no or only nominal tax jurisdictions and review any new and outstanding regimes of Inclusive Framework members. The OECD is also currently undertaking its seventh annual peer review of the BEPS Action 5 transparency framework.