NEW DELHI: G20 leaders on Saturday decided to rapidly implement global tax reforms that include a framework on taxation for the digital economy and a global minimum corporate tax rate, the leaders said in the New Delhi summit declaration adopted by member states.
“We reaffirm our commitment to continue cooperation towards a fair, sustainable and globally modern international tax system appropriate to the needs of the 21st century. We remain committed to the rapid implementation of the two-pillar international tax package,” the declaration read.
The leaders said significant progress has been made on a key component of global tax reform, called “Pillar One,” including the introduction of the text of the Multilateral Agreement (MLC). This multilateral tax document is expected to be ready for signature in the second half of 2023. Separately, work is also progressing on other elements of tax reform, under the “second pillar”.
“We welcome the steps taken by various countries to implement Global Rules to Combat Base Erosion (GloBE) as a common approach. We recognize the need for concerted efforts towards capacity building to effectively implement the two-pillar international tax package, and in particular we welcome the plan for Providing additional support and technical assistance to developing countries.
Leaders also called for swift implementation of the Crypto Asset Reporting Framework (CARF), while acknowledging the work done on sharing information for tax purposes.
They also said, in the announcement, that they will continue to closely monitor the risks of rapid developments in the crypto-asset ecosystem. “We endorse the high-level recommendations of the Financial Stability Board (FSB) on the regulation, supervision and oversight of the activities and markets of crypto-assets and global stable currency arrangements. We request that the FSB and FSBs promote timely and effective implementation of these recommendations. The announcement said in a consistent manner on Global level to avoid regulatory arbitrage.
The G20 leaders also welcomed the IMF-FSB Synthesis Paper on Regulations for Crypto Assets.