OECD releases peer-review report on BEPS anti-abuse measures, with recommendations for Latin American countries

Wednesday, 17 April 2024
The OECD has released its sixth peer-review of the implementation of its base erosion and profit shifting (BEPS) Action 6 minimum standard on treaty shopping.

The report shows “steady progress in the implementation of the BEPS package to tackle international tax avoidance,” the OECD says. It shows that more than 1,360 agreements concluded by Inclusive Framework members are complying with the minimum standard.

The report includes a review of measures taken by the members of the OECD/G20 Inclusive Framework on BEPS (the Inclusive Framework), including Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Panama, Paraguay, Peru, and Uruguay.

None of the Latin American countries show any significant deficiencies and the OECD has made some minor recommendations for future progress. Argentina, Colombia, and Peru are all recommended to take steps to have the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS MLI) come into effect as soon as possible. The BEPS MLI will modify various tax agreements and bring them into line with the minimum standard when the MLI provisions take effect.

According to the report, Costa Rica, Mexico, and Panama are either implementing the minimum standards in their tax agreements or are taking steps to do so once the provisions of the MLI take effect.

Chile and Uruguay are both largely implementing the BEPS minimum standard: 28 of Chile’s 36 tax agreements and 17 of Uruguay’s 23 agreements comply with the standard. The OECD notes that both indicated that they have taken measures to bring their other agreements into line with the standard, either under the provisions of the MLI or through other steps.

Neither Brazil nor Paraguay have signed the MLI; however, the report notes that both countries have committed to taking steps to implement the minimum standard across their various tax agreements.

The next peer review of the BEPS Action 6 minimum standard implementation will take place over 2028 and 2029.


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