Jamaica, Angola, and Seychelles have joined the OECD’s framework to implement the OECD/G20 base erosion profit shifting (BEPS) project to combat multinational tax avoidance, the OECD has announced.
As such, 85 countries, including 39 countries that are neither OECD nor G20 members, have agreed to take part in the initiative as of July 15.
The commitment means that the countries have agreed to follow OECD/G20 BEPS minimum standards on treaty shopping; implement country-by-country reporting for transfer pricing; limit benefits of any intellectual property or other preferential tax regimes; and fully implement the mutual agreement procedure (MAP) in their tax treaties. The countries must also pay a fee to participate.
In return, the countries will be permitted to work alongside OECD and G20 countries developing guidance to ensure the consistent implementation of the four minimum standards, which will be subject to a peer review process; setting international tax standards; participating in ongoing data gathering on the tax challenges of the digital economy; and measuring the impact of BEPS.
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