Special Economic Zones Facing the Challenges of International Taxation: BEPS Action 5, EU Code of Conduct, and the Future

ABSTRACT Corporate taxation and particularly corporate tax incentives that jurisdictions introduce in special economic zones have not, until recently, been subject to extensive international regulation. Only the last decade has a regime of soft law standards European Union measures with extraterritorial effect constructed. This article explains how Base Erosion Profit Shifting Action Plan developed by Organisation for Economic Co-operation Development (OECD) Code Conduct Business Taxation interact zones. Empirical evidence from Latin American Caribbean shows this emerging began having an impact on zone laws beyond OECD Member States. An analysis ongoing negotiations further developments permits cautious conclusion regulation SEZs may future be affected more fundamental manner norms. Thereby, zones’ unilateralism slowly receding contrast other areas governance.