Prevention of Treaty Abuse – Second Peer Review Report on Treaty Shopping

Faroe Islands

A. Progress in the implementation of the minimum standard

The Faroe Islands has five tax agreements in force, as reported in its response to the Peer Review questionnaire, including the multilateral Nordic Convention concluded with Denmark, Finland, Iceland, Norway and Sweden (the “Nordic Convention”)1. The Faroe Islands has not signed the MLI.

The Faroe Islands is implementing the minimum standard through the inclusion of the preamble statement and the PPT.

The Faroe Islands signed a complying instrument with respect to its agreement with Greenland.

The Faroe Islands indicated in its response to the Peer Review questionnaire that the agreements with India and Switzerland are agreements concluded by Denmark that apply to its territory.

The Parties to the Nordic Convention signed a complying instrument in 2018.

B. Implementation issues

No jurisdiction has raised any concerns about their agreements with the Faroe Islands.

Summary of the jurisdiction response – Faroe Islands

 

	Treaty partners	Compliance with the standard	If compliant, the alternative implemented	Signature of a complying instrument	The alternative implemented through the complying instrument (if not the MLI)	Comments
1	Denmark	No	N/A	Yes	PPT alone	Nordic Convention
2	Finland	No	N/A	Yes	PPT alone	Nordic Convention
2	Greenland	No	N/A	Yes	N/A
3	India	No	N/A	Yes	N/A	DK MLI
4	Iceland	No	N/A	Yes	PPT alone	Nordic Convention
5	Norway	No	N/A	Yes	PPT alone	Nordic Convention
6	Sweden	No	N/A	Yes	PPT alone	Nordic Convention
7	Switzerland	No	N/A	No	N/A	DK Protocol
8	United Kingdom	No	N/A	No	N/A	Awaiting UK