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G20 Finance Ministers Communiqué Published Following Riyadh Meeting — Orbitax Tax News & Alerts

The G20 Finance Ministers Communiqué has been published following the meeting held 22 to 23 February 2020 in Riyadh, Saudi Arabia. With respect to tax and transparency, the main text of the Communiqué includes the following:

We welcome the recent progress made on addressing the tax challenges arising from the digitalization of the economy. We endorse the Outline of the Architecture of a Unified Approach on Pillar One as the basis for negotiations and welcome the Progress Note on Pillar Two, both of which were agreed by the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS). We encourage further progress on both Pillars to overcome remaining differences and reaffirm our commitment to reach a consensus-based solution with a final report to be delivered by the end of 2020. We stress the importance of the G20/OECD Inclusive Framework on BEPS agreeing on the key policy features of a global and consensus-based solution by July 2020, which would form the basis of a political agreement. We reiterate the importance of international cooperation to complete this work and ensure tax certainty. We welcome the progress made on implementing the internationally agreed tax transparency standards. We take note of the updated G20/OECD list of jurisdictions that do not comply with such standards. Defensive measures against listed jurisdictions will be considered. We continue to support tax capacity building in developing countries, including coordinating through the Platform for Collaboration on Tax. We call on all jurisdictions to sign and ratify the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

With respect to issues for further action in relation to taxation, the Communiqué includes the following:

We look forward to the progress report from the Platform for Collaboration on Tax, including the toolkits addressing international taxation issues for developing countries, progress with the development of Medium-Term Revenue Strategies, and related workshops – July 2020.

We look forward to developments on tax certainty, including the OECD International Compliance Assurance Programme, and other related initiatives – October 2020.