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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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G20 back OECD 2 pillar international tax reform proposals

G20 Finance Ministers and Central Bank Governors gathered in-person on Friday, 9 July and Saturday, 10 July for the first Finance Track meeting since February 2020. G20 Ministers and Governors endorsed the key components of the OECD’s two pillars on the reallocation of profits of multinational enterprises and an effective global minimum tax. G20 members called on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting to finalise the design elements within the agreed framework together with a detailed plan for the implementation of the two pillars by their next meeting in October.

The official Communiqué stated:

“After many years of discussions and building on the progress made last year, we have achieved a historic agreement on a more stable and fairer international tax architecture. We endorse the key components of the two pillars on the reallocation of profits of multinational enterprises and an effective global minimum tax as set out in the “Statement on a two-pillar solution to address the tax challenges arising from the digitalisation of the economy” released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on July 1. We call on the OECD/G20 Inclusive Framework on BEPS to swiftly address the remaining issues and finalise the design elements within the agreed framework together with a detailed plan for the implementation of the two pillars by our next meeting in October. We invite all members of the OECD/G20 Inclusive Framework on BEPS that have not yet joined the international agreement to do so. We welcome the consultation process with developing countries on assessing progress made through their participation at the OECD/G20 Inclusive Framework on BEPS and look forward to the Organisation for Economic Co-operation and Development (OECD) report in October.”

RTÉ reported that Minister for Finance, Paschal Donohoe met US Treasury Secretary Janet Yellen in Brussels, on Monday 12 July, in his capacity as the president of the Eurogroup. Ireland is one of a nine countries that currently oppose the plan for a minimum 15 percent global tax rate as promoted by the OECD/G20.