Outcomes of the review of preferential tax regimes by the OECD Forum on Harmful Tax Practices

By IDEAS

At its April 2022 meeting, the Forum on Harmful Tax Practices (FHTP) agreed new conclusions on 12 regimes as part of the implementation of the BEPS Action 5 minimum standard on harmful tax practices. Three regimes have been amended to be in line with the standard and are now not harmful: Costa Rica, Greece and Kazakhstan.

Eswatini and Honduras made government commitments, and therefore, three regimes are now in the process of being amended/eliminated. 

Furthermore, three regimes were concluded as potentially harmful (Armenia and Pakistan); the FHTP will assess at its next meeting if these regimes are actually harmful. Finally, one new regime from Cabo Verde is under review.

Since the start of the OECD/G20 BEPS Project tackling international tax avoidance, the FHTP has reviewed a total of 319 regimes