On May 17 the OECD released its decisions on 11 preferential regimes of BEPS Inclusive Framework Members.

 

The following 4 new regimes were designed to comply with FHTP standards, meeting all aspects of transparency, exchange of information, ring fencing and substantial activities and are found to be not harmful:

·       Lithuania - Tonnage tax regime

·       Luxemborg - IP regime

·       Singapore - IP development incentive (found not to be harmful but this isubject to final adoption of new legislation)

·       Sloavak Republic - Patent-box

The following 4 regimes were abolished or amended to remove harmful features:

·       Chile - Business platform regime (Potentially but not actually harmful. Abolished from January 1, 2022)

·       Malaysia - Labuan leasing (Amended)

·       Turkey - Technology development zones regime (Not harmful except for the extension to new entrants between July 1, 2016 and October 19, 2017, which is considered harmful)

·       Uruguay - Shared service centre (Amended)

A further 3 regimes do not relate to geographically mobile income and/or are not concerned with business taxation, as such posing no BEPS Action 5 risks and have therefore been found to be out of scope:

·       Kenya - Export processing zone

·       Viet Nam - Export processing zone

·       Viet Nam - Industrial parks/zones

Click here to be forwarded to the May 2018 update of the OECD’s Harmful Tax Practices – 2017 Progress Report on Preferential Regimes

 

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