The African Tax Administration Forum (ATAF), an organization of revenue authorities from 38 African countries, has provided its views on the outcome of the January 29–30 Inclusive Framework meeting. At this meeting, an update to the international tax rules affecting multinationals was considered by 130+ nations.
ATAF members noted the technical complexity of the pillar one and two international tax proposals and worry that some African countries may commit to the rules before fully understanding their impact.
The ATAF expresses strong support for pillar one’s Amount B and seeks clear definitions of what constitutes marketing and distribution activities. Many members reject mandatory binding arbitration, though, the ATAF notes.
With respect to pillar two, the group states that the statutory tax rate in African nations is typically between 25% and 35%. If the minimum effective rate is substantially below these rates, pillar two is unlikely to reduce artificial profit shifting, the tax officials note.
The ATAF said it is working with the African Union and its Economic Affairs Commission to seek a broader African consensus on international tax issues.
I strongly agree with this observation.It is very complexe to understant this OECD report. Even the last IBFD webinar about current issues in international taxation was about OECD Global Tax Reform proposas pillar 1 and Pillars 2.