By Doug Connolly, MNE Tax
The West African nation of Togo became the 140th country to join the OECD/G20 Inclusive Framework on base erosion and profit shifting (BEPS) and the 134th Inclusive Framework member to endorse the two-pillar international tax reform statement released earlier this summer, according to an August 31 OECD announcement.
The Inclusive Framework enables smaller countries to engage in global talks with the OECD/G20 on measures related to tackling tax avoidance and addressing tax issues connected with the digital economy. To become a member, countries must commit to implement the BEPS package, including minimum standards on issues related to tax treaty abuse, harmful tax practices, country-by-country reporting, and dispute resolution.
By also concurrently joining the international tax reform July 1 statement, Togo further signals its support for ongoing efforts to establish a global minimum corporate tax (Pillar 2) and to modify international taxation rules to reallocate taxing rights for a portion of large multinationals’ profits to market jurisdictions (Pillar 1).
Togo is the most recent country to join the July 1 statement since Barbados joined earlier this month. Among the six Inclusive Framework members that have so far declined to endorse the statement is Togo’s near neighbor, and the largest economy in Africa, Nigeria.
Doug Connolly
Doug Connolly is Editor-in-Chief of MNE Tax. He has more than 10 years of experience covering tax legal developments, previously working with both a Big Four firm and a leading legal publisher. He holds a law degree from American University Washington College of Law.
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