Progress continues on implementing the BEPS Action 5 minimum standard, with Anguilla changing its laws to address tax practices. On 19 July 2019, the inclusive Framework on BEPS approved the latest results of reviews of jurisdictions’ domestic laws conducted by the OECD Forum on Harmful Tax Practices (FHTP).
After agreeing the new substantial activities standard for no or only nominal tax jurisdictions in November 2018, Anguilla introduced the necessary domestic legal framework to meet the standard. The standard requires that for certain highly mobile sectors of business activity, the core income generating activities must be conducted with qualified employees and operating expenditure in the jurisdiction.
The FHTP has now reviewed the new domestic laws Anguilla and concluded that the domestic legal framework is in line with the standard and therefore “not harmful.”
From 2020, the FHTP will start an annual monitoring process for the effectiveness of Anguilla’s mechanisms to ensure compliance with the standard in practice.
It just goes to prove that Anguilla is really ready for business.
Anguilla: An effective Jurisdiction