BEPS Action 5 minimum standard - KPMG Global
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BEPS Action 5 minimum standard, spontaneous exchange on tax rulings

BEPS Action 5 minimum standard

The Organisation for Economic Cooperation and Development (OECD) today announced the release of the first analysis of participating countries' progress in exchanging information on tax rulings under a new minimum standard—one that provides for the spontaneous exchange of information about certain tax rulings between relevant tax administrations in a timely manner (in accordance with Action 5 of the base erosion and profit shifting (BEPS) project). The minimum standard applies to rulings such as advance pricing agreements (APAs), permanent establishment rulings, related-party conduit rulings, and rulings on preferential regimes.


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According to today’s OECD release, the first annual report on the exchange of information on rulings evaluates how 44 countries (including all OECD members and all G20 countries) are implementing the minimum standard under the BEPS project. The minimum standard requires tax administrations to “spontaneously exchange” information on rulings that have been granted to a foreign related party of a resident taxpayer or a permanent establishment. 

The annual report includes almost 50 country-specific recommendations on issues such as improving the timeliness of the exchange of information, so that all relevant information on the taxpayer’s related parties is captured for exchange purposes, and that exchanges of information are made with respect to preferential tax regimes that apply to income from intellectual property.

The next annual peer review will cover all members of the BEPS inclusive framework, except for the developing countries that requested a deferral of their review to 2019.

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