UK states that OECD agrees on substantial activity level required to benefit from preferential IP regimes

Written by Philippe Vanclooster 15 December 2014


The Governments of Germany and the United Kingdom (UK) have, on 11 November 2014, shown their commitment to ensuring that the G20/OECD Base Erosion and Profit Shifting (BEPS) project is successfully concluded by the end of 2015. As such, they have issued a joint statement on 11 November, so as to take forward the pending negotiations on the so-called ‘modified nexus approach’. The UK government now states that the proposal was broadly welcomed by the Forum for Harmful Tax Practices (FHTP) and the EU Code of Conduct Group, and that it will be used as a basis for future work. Furthermore, the UK government also released a ‘FAQ’ paper in which it explains the details of the agreement with the FHTP.

More information about the proposal can be found here.