The OECD has published the OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors which provides an update on issues, including the tax challenges arising from digitalisation, tax transparency developments, the implementation of BEPS measures and supporting developing countries.

The Report states that practical challenges as a result of the pandemic have inevitably affected the pace of progress of reaching a consensus-based solution to address the tax challenges arising from the digitalisation of the economy by the end of 2020, however, technical work on a solution continues to progress under both Pillar One (establishing a new nexus and reallocating taxing rights) and Pillar Two (ensuring a minimum level of taxation).

The report outlines that contrary to what has been reported publicly, all members are committed to the current negotiation even though some are of the view that a pause at the political level is needed. Multilateral efforts to reach a consensus-based solution are continuing throughout 2020, with Working Party meetings conducted remotely since the COVID-19 outbreak.