Following the announcement in early October that 136 member countries of the OECD/G20 Inclusive Framework on BEPS endorsed a revised Statement on the two-pillar solution to address the tax challenges arising from the digitalisation of the economy, the political agreement was endorsed by G20 Finance Ministers and Central Bank Governors.

The G20 Finance Ministers issued a Communiqué following their meeting, which called on the OECD/G20 Inclusive Framework and endorsed the agreement.

“We endorse 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…We call on the OECD/G20 to swiftly develop the model rules and multilateral instruments as indicated in and according to the timetable provided in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023.”

Following the announcement, European Commissioner for Economy, Paolo Gentiloni, released a Statement confirming the European Commission will swiftly put forward a directive to implement Pillar Two in the EU once the OECD has finalised the model rules under the pillar. Regarding Pillar One, the Commission will carefully examine whether a directive is needed to ensure its consistent and effective implementation at EU level.