On Wednesday 13 October in Washington, the G20 Finance Ministers endorsed the “final political agreement” on the international corporate tax reform negotiated within the OECD.
On Friday 8 October, 136 countries agreed on the modalities of the two pillars of this reform, namely the reallocation of taxing rights (Pillar I) and the minimum effective taxation (Pillar II) (see EUROPE 12808/2).
“This agreement will establish a more stable and fairer international tax system”, says the G20 Finance Group in its communiqué. It calls on the OECD to develop multilateral instruments “quickly” so that the new rules become applicable globally “in 2023”.
“The green and digital transition can only be achieved if it is based on equity. This global corporate tax reset is therefore a fundamental part of the change we need: everyone must pay their fair share”, said EU Taxation Commissioner Paolo Gentiloni in a statement.
Sustainable finance. The ministers also endorsed a roadmap on sustainable finance.
The roadmap, which focuses on five areas (market developments, information on sustainability risks/opportunities, risk management, role of the public sector, cross-cutting issues), foresees “voluntary and flexible” measures over several years. It could be extended to biodiversity and societal issues in the future, they note.
See the G20 Finance statement: https://bit.ly/2YLb0JF
See the roadmap on sustainable finance: https://bit.ly/30vAYlv (Original version in French by Mathieu Bion)