At their summit in Rome in late October, G20 leaders endorsed the revised Statement of Agreement on the two-pillar solution to address the tax challenges arising from the digitalisation of the economy. The G20 leaders called on the OECD/G20 Inclusive Framework on BEPS to develop the model rules and multilateral instruments swiftly for implementation in 2023.

The OECD Secretary-General Mathias Cormann welcomed the outcome of the G20 Leaders Summit stating that “as we move into the implementation phase of the agreement, the OECD stands ready to facilitate the work needed to ensure the timely and effective implementation of the two-pillar solution.”

The two-pillar solution has been agreed by 137 countries and jurisdictions representing 94 percent of global GDP. According to the OECD, Pillar One will reallocate more than USD$ 125 billion of profits from around 100 of the world’s largest and most profitable multinational enterprises to countries worldwide. Pillar two of the agreement establishes a global minimum corporate tax rate of 15 percent and it is estimated that countries will collect around USD$ 150 billion in new revenues annually.