Belize and Cayman to adopt BEPS Minimum International Tax Standards
OECD announced on April 13 that Belize and the Cayman Islands have become Associate members participating in the base erosion and profit shifting project and committing to implement minimum BEPS standards.
With the two new Associates joining, membership in the inclusive framework now stands at 96 countries and jurisdictions.
The commitment means that Belize and Cayman Islands have agreed to become members of the OECD's new "inclusive framework," and to adopt BEPS minimum standards implementing on harmful tax practices, country-by-country reporting for transfer pricing and the mutual agreement procedure in their tax treaties, limiting benefits of any intellectual property or other preferential tax regimes, and improving dispute resolution mechanisms. The countries must also pay a fee to participate.
Moreover, both countries will be permitted to work alongside OECD and G20 countries to allow all interested jurisdictions to contribute equally to ensure prevalent implementation of BEPS minimum standards and measures, which will be subject to monitoring.
The framework was announced by the OECD in February 2016 to allow all interested jurisdictions to contribute equally to future work on BEPS and on monitoring the implementation of BEPS measures.