Harmful Preferential Tax Regime

The OECD defines a harmful preferential tax regime as one that:

  • Imposes a low or zero effective tax rate on the relevant income.
  • The regime is ring-fenced (that is, it does not offer its domestic tax-payers the same incentives for the same activity as are offered to foreigners).
  • Operation of the regime is non-transparent and there is no effective exchange of information with other countries.