OECD Secretary-General Mathias Cormann welcomed the G20 Leaders’ Declaration, recognising the historic tax agreement reached by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). 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 (page 11 of the G20 Leaders’ Declaration). 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 according to the OECD.
We will keep you posted on the developments of the rules and the implementation plan of the two-pillar solution in the coming months.