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BEPS Reforms and Sanction Pressure as Factors in the Transformation of Offshore Jurisdictions in 2025
Voytovych L. M., Ivasyshyn K. I.

Voytovych, Lyudmyla M., and Ivasyshyn, Khrystyna I. (2025) “BEPS Reforms and Sanction Pressure as Factors in the Transformation of Offshore Jurisdictions in 2025.” Business Inform 8:352–360.
https://doi.org/10.32983/2222-4459-2025-8-352-360

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
Downloads/views: 3

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UDC 336.225.67:336.741.24

Abstract:
The article examines current trends in the transformation of offshore jurisdictions under the influence of international tax reforms and geopolitical factors in 2025. Special attention is given to the implementation of the BEPS Action Plan, initiated by the OECD and supported by the EU and the USA, aimed at combating base erosion and profit shifting to low-tax jurisdictions. It is shown that the implementation of BEPS initiatives limits the possibilities for aggressive tax planning by multinational corporations, reduces the volume of artificial capital movements, and enhances the transparency of financial operations. At the same time, the intensification of sanction pressure after 2022 has become an additional tool for reshaping the global offshore space. Sanction restrictions have significantly reduced the role of traditional offshore centers as «safe havens» for capital and have led to a change in the geography of investment flows. An analysis of statistical data on the net inflow of foreign direct investment into specific offshore zones from 2019 to 2024 was conducted, which revealed a trend of decreasing capital concentration in traditional jurisdictions (British Virgin Islands, Cayman Islands, Panama) and strengthening the role of «mid-tier» financial centers (Singapore, UAE, Ireland). It is demonstrated that the combination of tax reforms and sanctions policy creates new requirements for corporate structures, which must adapt their business models to conditions of transparency, compliance, and limited access to shadow schemes. It is argued that, prospectively, offshore jurisdictions will evolve towards the creation of hybrid financial centers with partial retention of tax advantages, provided they comply with international transparency standards and account for sanctions risks. For Ukraine, adapting tax policy to new global realities, increasing participation in the BEPS process, and taking into account the sanctions dimension in ensuring financial security are of particular importance. The results obtained have practical value for further research in the development of a national tax strategy, as well as for transnational businesses operating in a multi-level regulatory environment.

Keywords: BEPS reforms, offshore jurisdictions, foreign direct investment, sanctions pressure, transnational corporations, tax planning, financial flows, international tax policy.

Fig.: 1. Tabl.: 1. Bibl.: 25.

Voytovych Lyudmyla M. – Doctor of Sciences (Economics), Professor, Professor, Department of Analytical Economics and International Economics, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)
Email: [email protected]
Ivasyshyn Khrystyna I. – Masters Student, Department of Analytical Economy and International Economics, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)

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