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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.