G20 leaders seek improved international tax system based on tax treaties, transfer pricing rules

by Julie Martin, MNE Tax

G20 leaders, in a communique issued after their summit in Buenos Aires, Argentina, reaffirmed their commitment to improving the international tax system.

“We will continue our work for a globally fair, sustainable, and modern international tax system based, in particular on tax treaties and transfer pricing rules, and welcome international cooperation to advance pro-growth tax policies,” the leaders said following their meeting, which concluded December 1.

The leaders also declared that worldwide implementation of the OECD/G20 base erosion and profit shifting (BEPS) package “remains essential.”

Further, they promised to work toward reaching a consensus-based solution to address the impacts of the digitalization of the economy on the international tax system.

In a tweet, the Director of the OECD Centre for Tax Policy and Administration, Pascal Saint-Amans, reported that during the leaders’ discussions on digital taxation, French President Emmanuel Macron argued in favor of  “BEPS 2.0,” namely, a minimum corporate tax, while US Treasury Secretary Steven Mnuchin said the US favored a broad approach to dealing with digital economy taxation issues.

The OECD Secretary-General prepared report for the leaders for their meeting which discusses the status of OECD-led efforts to fight tax evasion and avoidance, improve tax certainty, and to assist developing countries with international tax matters.

The activities and achievements of the Global Forum on Transparency and Exchange of Information for Tax Purposes are also outlined in this report.

The leaders of the BRICS countries of Brazil, Russia, India, China, and South Africa also held an informal meeting in the sidelines of the G20; however, a communique issued by these countries following their meeting made no mention of agreements relating to international tax.

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Julie Martin

Julie Martin

Founder & Editor at MNE Tax

Julie Martin is the founder of MNE Tax. She edits the publication and regularly contributes articles on new developments in cross-border business taxation.

Julie has worked as a tax journalist and editor for more than 13 years. Prior to that, she worked as an in-house tax attorney in New York. She also holds an LLM in taxation from New York University School of Law.

Julie can be reached at jmartin@mnetax.com.

Julie Martin
Julie Martin
Julie can be reached at jmartin@mnetax.com.


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