OECD - Base Erosion & Profit Shifting
OECD and G20 BEPS Action Plan: Changes to the International Tax System
Counter Harmful Tax Practices
- The (BEPS) Project, an ambitious plan undertaken jointly by the OECD and G20
to overhaul the global international tax system, culminated with a huge report
of recommendations that, if adopted, could have a significant impact on cross-border trade.
Counter harmful tax practices
more effectively, taking into account transparency and substance
Revamp the work on harmful tax practices with a priority on improving
transparency, including compulsory spontaneous exchange on rulings
related to preferential regimes, and on requiring substantial
activity for any preferential regime.
It will take a holistic approach to evaluate preferential tax regimes in
the BEPS context. It will engage with non-OECD members on the basis
of the existing framework and consider revisions or additions to the
Issues to be examined include, but are not limited to,
- Firstly, the assessment of preferential tax regimes
- Secondly, the peer review and monitoring of Action 5 transparency framework
through the compulsory spontaneous exchange of information on taxpayer specific rulings
- Thirdly, the review of substantial activities requirements in no or
only nominal tax jurisdicions (significant low corporate tax rate) to ensure a
level playing field.