Update on G20 Leaders Summit :: BEPS 2.0
The G20 leaders met in Rome on October 30th and 31st and discussed several issues pertaining to recovery of global economy, health, climate change, environment, digital economy, financial inclusion, and international taxation, to name a few.
Continuing their commitment to the OECD/G20 Inclusive Framework (IF) on BEPS, the G20 leaders, in a statement issued yesterday, lauded the OECD on the progress achieved so far and creating a consensus amongst 136 countries to implement Pillar One and Pillar Two propositions.
The G20 leaders however impressed upon the OECD and the G20 member countries to swiftly develop the model rules and multilateral instruments and to implement the same by the committed effective date of 2023. The OECD report on the progress made by the developing countries in the IF, which identifies the possible areas where domestic resource mobilization efforts could be further supported was also acknowledged by the G20 leaders.
The OECD Secretary General Mathias Cormann welcomed the G20 leaders Rome declaration and echoed the sentiment of having an effective implementation roadmap. As per Mr. Cormann, an agreement without an implementation plan is no agreement at all!
The OECD has mentioned that the historic tax deal reached on October 08, 2021, has already de-escalated tax and trade tensions and the implementation of the two-pillar agreements will be key to restore and bolster tax certainty.
The KSA is a part of the G20, and the UAE, Bahrain, Oman and Qatar are a part of IF which have signed the agreement on October 08, 2021. Companies and organizations within the GCC need to closely monitor these significant developments and evaluate the overall impact of the propositions on the operating business structures.
Interesting times ahead!
