OECD Implements Substance Requirement on Low Tax Jurisdictions

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The OECD has established a forum which routinely assess in order to assess jurisdictions offering preferential tax regimes and all zero- or low-tax havens on their:

• Substantial activity requirements.
• Transparency of laws on taxation.

The Forum for Harmful Tax Practices have released their latest progress report and have failed to find any preferential tax regimes that can be harmful in their approach to encourage profit-shifting. The only red flag to be found was France’s tax relief on profits from the licensing of intellectual property rights and long-term capital gains.