G20 finance ministers and central bank governors at their June 8–9 meeting in Tsukuba, Japan, endorsed a work plan, created by a 129-country coalition called the “Inclusive Framework on BEPS.” The work plan provides a process for reaching global consensus on revised rules for taxing multinational groups by 2020 to respond to countries’ concerns that multinational digital firms can take advantage of outdated rules to skirt taxation.
“We welcome the recent progress on addressing the tax challenges arising from digitalization and endorse the ambitious work program that consists of a two-pillar approach, developed by the Inclusive Framework on BEPS,” the ministers said in a communique.”We will redouble our efforts for a consensus-based solution with a final report by 2020,” they said.
The ministers said they would continue to cooperate for a “globally fair, sustainable, and modern international tax system” and welcomed international cooperation to advance pro-growth tax policies.
They also reaffirmed the importance of the worldwide implementation of the G20/OECD base erosion and profit shifting (BEPS) package and enhanced tax certainty. Recent achievements on tax transparency, including progress on automatic exchange of financial account information for tax purposes, were cited.
The OECD Secretary-General prepared a tax report for the ministers’ meeting which set out the Inclusive Framework work plan and highlighted OECD tax initiatives
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