Andorra has become the 40th country that is neither an OECD nor G20 member to join what is known as the inclusive framework for BEPS implementation, a group of countries that have pledged to adopt measures, designed by the OECD and G20 in the base erosion profit shifting (BEPS) project, to combat multinational tax avoidance.
According to today’s OECD announcement, total membership of the inclusive framework for BEPS implementation now stands at 86 countries and jurisdictions.
The commitment means that the Andorra has agreed to follow OECD/G20-designed BEPS minimum standards on tax 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 in its tax treaties. Andorra must also pay a fee to participate.
In return, Andorra will be permitted to work alongside OECD and G20 countries to ensure widespread adoption of the BEPS minimum standards, which will be subject to a peer review process; participate in some remaining BEPS project international tax standard setting work; participate in ongoing data gathering on the tax challenges of the digital economy; and work on measuring the impact of BEPS.
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