The Seychelles has committed to implementing the minimum standards put forward by the OECD on base erosion and profit shifting (BEPS), reports Tax News.
The commitment comes as part of the territory becoming an associate member of the OECD's new inclusive framework for BEPS implementation. These minimum standards are on: harmful tax practices, tax treaty abuse, country-by-country reporting, and dispute resolution mechanisms.
As an associate member, the Seychelles has committed to engage in future negotiations on measures and pay an annual fee.
Members of the framework will work on an equal footing to tackle tax avoidance, to improve the coherence of international tax rules, and to ensure a more transparent tax environment. In particular, the framework will: develop standards in respect of remaining BEPS issues; review the implementation of agreed minimum standards through an effective monitoring system; monitor BEPS issues, including tax challenges raised by the digital economy; and facilitate the implementation processes of the members by providing further guidance and by supporting development of toolkits and guidance to support low-capacity developing countries.
The Seychelles recently met with more than 80 countries and jurisdictions in Kyoto, Japan, in the first meeting of G20 members and associate members. There, participants started work to undertake the standard-setting on remaining issues including transfer pricing and interest deductibility, as well as the development of practical guidance to support consistent, global implementation of their commitments to the BEPS package.