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G20 Finance Ministers Endorse Final Political Agreement on OECD Two-Pillar Solution for International Tax Reform — Orbitax Tax News & Alerts

The G20 Finance Ministers and Central Bank Governors have issued the official communiqué following their meeting held on 13 October 2021, including their endorsement of the political agreement on the OECD's two-pillar solution for international tax reform. Regarding the endorsement, the communiqué includes the following:

After the historic agreement reached in July on the key components of the two pillars on the reallocation of profits of multinational enterprises and an effective global minimum tax, we endorse the final political agreement as set out in the Statement on a two-pillar solution to address the tax challenges arising from the digitalisation of the economy and in the Detailed Implementation Plan, released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on 8 October. This agreement will establish a more stable and fairer international tax system. We call on the OECD/G20 Inclusive Framework on BEPS to swiftly develop the model rules and multilateral instruments as indicated in and according to the timetable provided in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023. We welcome the Organisation for Economic Co-operation and Development (OECD) report on Tax and Fiscal Policies after the COVID-19 Crisis. We note the OECD report on Developing Countries and the OECD/G20 Inclusive Framework on BEPS identifying developing countries' progress made through their participation in the OECD/G20 Inclusive Framework on BEPS and possible areas where domestic resource mobilisation efforts could be further supported. We look forward to further discussing, on a regular basis, the initiatives undertaken to follow up the recommendations included in the report.