Our insight at a glance
- In the past few weeks, the G7, G20, and the OECD Comprehensive Framework for Tax Source Erosion and Profit Transfer have successfully concluded on the tax challenges that arise from globalization and the digitization of the economy.
- As a result, a common statement outlining the revised OECD proposal was issued. The key points of this statement are summarized in the first and second pillars.
- The purpose of the Inclusive Framework is to finalize the agreement with the implementation plan by October 2021 with a view to implementing it worldwide in 2023.
- Taking into account the current form, the first and second pillar proposals should have very limited impact in Luxembourg.
At the end of 2020, the OECD sought to tackle the tax challenges arising from globalization and digitalization of the economy, especially the world’s lowest tax by mid-2021, and reach a successful conclusion. That task has been achieved. Everything speeded up in the G7 at the beginning of June and ended in the G20 in mid-July. But that doesn’t mean they’re still there. Many steps and obstacles need to be overcome.
Let’s return to the various important steps that have been achieved so far.
among them Communiqué On June 5, 2021, the G7 Finance Ministers and Central Bank Governors (Canada, France, Germany, Italy, Japan, United Kingdom and the United States) made an OECD proposal to address the tax challenges posed by digitization. Announced support for. And…