The G20 Finance Ministers agreed on Wednesday 14 October, during their meeting by videoconference, to continue efforts to reach agreement on international tax reform. They also confirmed the new deadline of mid-2021.
Ministers agreed on “the way forward, including the timetable for finding a consensual solution”, Saudi Finance Minister Mohammed Al-Jadaan said at a press conference.
The 'G20 Finance' gave the green light to the blueprints for the OECD's Inclusive Framework on BEPS on both pillars of reform (see EUROPE 12579/21), which constitute a “sound basis”, according to the final communiqué issued at the end of the meeting.
Mr Al-Jadaan also considered that the postponement of an agreement to 2021 was by no means a failure. While the Covid-19 pandemic was mobilising many resources, it did not distract the attention of the G20 and OECD, which were continuing their work on this reform, he said.
At the end of the meeting, French Finance Minister Bruno Le Maire was reported to have warned again that the EU would have to go ahead with its own digital tax if international negotiations failed, according to Reuters.
For its part, the Oxfam organisation said in a statement that until an agreement can be reached, countries should be protected from trade sanctions to make their own rules to tax digital giants.
“It’s immoral that poor countries are continuing to lose at least $100 billion in revenue to tax havens, as they struggle with debt and a critical lack of resources to fight this pandemic”, the organisation said.
Moratorium on poor countries' debt extended for 6 months
In addition, the G20 Finance Ministers decided to extend for 6 months the DSSI initiative which suspends the debt service of the poorest countries as a result of the Covid-19 pandemic.
It will consider, at the World Bank and IMF meetings in the spring of 2021, whether the economic and financial situation requires a further six-month extension.
See the press release: https://bit.ly/3lFjs3g (Original version in French by Marion Fontana)