31 October 2021

OECD Secretary-General Mathias Cormann welcomes outcome of the G20 Leaders Summit

At their summit in Rome this weekend, G20 leaders called on the OECD/G20 Inclusive Framework on BEPS to develop the model rules and multilateral instruments swiftly, to ensure they come into effect globally in 2023.

OECD Secretary-General Mathias Cormann welcomed today’s G20 Leaders’ Declaration, recognising the historic tax agreement reached by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS).

“This reform will make our international tax system fairer and work better in a digitalised and globalised world economy,” he said.

“As we move into the implementation phase of the agreement, the OECD stands ready to facilitate the work needed to ensure the timely and effective implementation of the two-pillar solution", said Mr Cormann. “Agreement without implementation is de facto no agreement at all, so countries must move as quickly as possible to bring both pillars into effect.”

The deal struck on 8 October 2021 among 136 countries and jurisdictions representing 94% of global GDP will, once implemented, reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable multinational enterprises to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits. The agreement also establishes for the first time a global minimum corporate tax rate of 15% that will see countries collect around USD 150 billion in new revenues annually.

The OECD says the deal has already de-escalated tax and trade tensions. Full implementation of the two-pillar agreement will be key to restoring, and bolstering, tax certainty.

OECD

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