Inclusive Framework Members continue countering harmful tax practices

Jurisdictions continue to make progress in addressing harmful tax practices through the implementation of the international standard under BEPS Action 5, as per new OECD results on preferential tax regimes and substantial activities in no or only nominal tax jurisdictions.

Recommendations for substantial improvement were made for one jurisdiction (Anguilla) and four jurisdictions (Anguilla, the Bahamas, Barbados, and the Turks and Caicos Islands) had areas where a need for focused monitoring was identified. No issues were identified for Bahrain, Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, the Isle of Man, and Jersey. The FHTP also concluded that since the introduction on June 1, 2023, of its corporate income tax rate of 9 percent, the UAE is now no longer a no or only nominal tax jurisdiction.

The total number of regimes reviewed by FHTP has now reached 322 with over 40% of those regimes being (or in the process of being) abolished.
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The next annual monitoring exercise for no or only nominal tax jurisdictions will take place in the second half of 2024.