G20 summit : new rules for a more stable and fairer international tax system ...

G20 leaders met for a two-day summit hosted by the Italian G20 presidency in Rome on 30 and 31 October 2021.

At the end of two days of working sessions and side events, the G20 Leaders adopted the G20 Rome Leaders Declaration. This document is the final outcome of an intense year of negotiations and events organized in the framework of the Italian G20 Presidency.

Main results

The G20 leaders agreed to:

• keep the goal of 1.5 degree global warming compared to pre-industrial levels within reach - see COP26 website-
• accelerate their actions towards achieving global net zero greenhouse gas emissions or carbon neutrality by or around mid-century
• reaffirm developed countries' climate finance commitment to mobilise jointly $100 billion per year, and welcome new commitments by some G20 members
• implement the new rules for a more stable and fairer international tax system, including a 15% global minimum corporate tax, by 2023
• advance efforts to ensure better and more timely access to COVID-19 vaccines in low- and middle-income countries
• establish a G20 Joint Finance-Health Task Force to ensure adequate financing of pandemic prevention, preparedness and response.

More about international taxation

> Point 32 to the document. "The final political agreement as set out in the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy and in the Detailed Implementation Plan, released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on 8 October, is a historic achievement through which we will establish a more stable and fairer international tax system. We call on the OECD/G20 Inclusive Framework on BEPS to swiftly develop the model rules and multilateral instruments as agreed in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023. We note the OECD report on Developing Countries and the OECD/G20 Inclusive Framework on BEPS identifying developing countries’ progress made through their participation in the OECD/G20 Inclusive Framework on BEPS and possible areas where domestic resource mobilisation efforts could be further supported".

• A ground-breaking tax deal for the digital age
• Press release: International community strikes a ground-breaking tax deal for the digital age (08/10/2021)
• Frequently asked questions (08/10/2021)
• Highlights brochure: Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy (08/10/2021)
• View all members of the OECD/G20 Inclusive Framework on BEPS
• Statement on a Two-Pillar Solution to Address the Tax Challenges Arising From the Digitalisation of the Economy – 1 July 2021

More information

> The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union. Spain is a permanent guest. The Italian G20 presidency invited seven additional leaders as guests to the summit, including the prime minister of the Netherlands.

>> Final Press Conference of Prime Minister Mario Draghi

Source : G20 website - The Council of the European Union - visit the meetingpage​