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OECD Tax Report To G20 Finance Ministers And Central Bank Governors
Friday 28th February 2025
The OECD Secretary General has issued its report to the G20 Finance Ministers and Central Bank Governors ahead of the first meeting under the South African G20 Presidency.
The report sets out recent developments in international tax co-operation including the OECD’s support of G20 priorities, in particular the implementation of BEPS minimum standards and Actions 5, 6, 13 and 14, the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy, transfer pricing, tax transparency, tax certainty, and tax administration.
Since the previous meeting in October 2024, the Co-Chairs of the G20/OECD Inclusive Framework on BEPS issued an update on the progress in the development of a final package for Pillar One of the Two-Pillar Solution. This package includes two components, being a text of the Multilateral Convention to implement Amount A and a linked framework for Amount B.
The update acknowledged progress made in 2024 to resolve a small number of disagreements on the MLC text, with only one jurisdiction objecting to the text’s adoption in June 2024. Negotiations have been focused on resolving the outstanding issues with the Amount B Framework. Only a few outstanding issues remain amongst certain jurisdictions.
The Secretary General emphasised that the common approach to establishing a global minimum tax under Pillar Two continues to draw interest from a broad range of developed, emerging, and developing economies. As of January 2025, there are 55 jurisdictions that have already enacted or introduced legislation to implement the GloBE rules. A further 10 jurisdictions have taken concrete steps toward implementation.
The Secretary General also confirmed that the OECD will support the Inclusive Framework in undertaking a broad-based stock-take to look at the progress and impact of international co-operation over the past 15 years. This is with a view to identifying opportunities to optimise resource allocation and co-operation between international organisations, to ensure cost-effective and efficient outcomes.
If you would like more information on the above, please contact Keith Rushen on 0207 486 2378
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