OECD reconfirms the credibility of the International Business Centre of Madeira

As a result of the conclusions of the recent G20 summit, which was held last April in London, Madeira’s International Business Centre has consolidated its position as a transparent and well regulated jurisdiction, fully integrated in the new architecture of the world financial order.

Madeira’s International Business Centre is a Portuguese jurisdiction of international vocation, formally approved by the European Commission as a State Aid Regime and created with the objective of providing adequate conditions for the development and diversification of a small outermost island economy such as Madeira’s.

The unanimous topic of attention in the G20 summit has been the need to distinguish the group of countries that have always cooperated and followed the rules of transparency and exchange of information, where Portugal has always been included, from those who do not cooperate on these matters and hence require particular attention from international organizations and tax authorities.

As a result of such analysis, Portugal has been included in the OECD white list, thus reconfirming very clearly the position of Madeira’s International Business Centre as a legitimate and credible jurisdiction, at a time when world leaders seek to re-establish the global confidence on the international financial system.

The recognition of Madeira’s IBC position, however, does not come as a surprise, since this jurisdiction has always been fully submitted to the Portuguese and E.U. legal order and has never been classified as an offshore centre or as a tax haven by international organizations such as the OECD or the European Union.

The stability of Madeira’s IBC tax regime, which shall remain unaltered until the end of 2020, and the confirmation of its transparency and strict compliance of international rules by the most relevant international authorities as far as fiscal regulation and supervision are concerned, provides national and international investors operating through Madeira’s IBC a high level of security and efficiency, in addition to the unique package of tax incentives that is applicable to a wide range of activities.