Base erosion and profit shifting

OECD reports strong progress to G20 on international tax reforms


17/07/2023 - The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) is making strong progress with ongoing reforms of the international tax system, according to the OECD Secretary-General’s latest tax report to G20 Finance Ministers and Central Bank Governors for their meeting in Gandhinagar this week.

The OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors highlights the historic milestone reached last week by 138 countries and jurisdictions who agreed an Outcome Statement summarising the package of deliverables developed by the Inclusive Framework on the remaining elements of the Two-Pillar Solution to Address the Tax Challenges arising from the Digitalisation of the Economy. These deliverables include a framework for the simplified and streamlined application of transfer pricing rules to certain marketing and distribution activities (Amount B of Pillar One) and a Subject to Tax Rule (STTR) which will enable developing countries to update bilateral tax treaties to “tax back” in respect of certain intra-group income where such income is subject to low or no nominal taxation in the other jurisdiction.

On Amount B of Pillar One, a public consultation launched today and running through 1 September, seeks input from stakeholders on a number of specific aspects of the framework, with a view to agreeing a final Amount B report by year-end and incorporating key content into the OECD Transfer Pricing Guidelines by January 2024.

On Amount A of Pillar One, the package includes a text of a Multilateral Convention (MLC), which allows jurisdictions to reallocate and exercise a domestic taxing right over a portion of MNE residual profits. The Inclusive Framework will publish the text of the MLC once it has been prepared for signature, upon resolution of a small number of specific items about which a few jurisdictions have expressed concerns.

The Report also highlights progress on tax and development initiatives and the tax transparency agenda. Building on a 2022 report, the G20/OECD Roadmap on Developing Countries and International Taxation Update 2023 sets out indicative targets and outlines the range of specific initiatives that are planned to accelerate progress in areas identified by developing countries as key priorities.

Strong progress on advancing tax transparency continues. The Report sets out the latest developments on the Crypto-Asset Reporting Framework (CARF) and amended Common Reporting Standard (CRS), noting that the OECD has completed the technical work on the international exchange architecture for both frameworks. As a result of tax transparency efforts since 2009, close to EUR 126 billion of additional revenues have been identified by governments, of which over EUR 41 billion by developing countries. The numbers of jurisdictions participating in AEOI and the amount of information exchanged continue to increase; in 2022, information on over 123 million financial accounts worldwide, covering total assets of above EUR 12 trillion, was exchanged automatically.

Finally, the Report includes new analysis on enhancing international tax transparency on real estate, unleashing the potential of automatic exchange of information for developing countries, and facilitating the use of tax-treaty exchanged information for certain non-tax purposes subject to the applicable conditions

As part of their ongoing work under Pillar Two, the Inclusive Framework has also issued today a package of documents consisting of the GloBE Information Return and further administrative guidance including two new safe harbours.  The GloBE Information Return includes simplified reporting requirements and that will form part of a centralised filing and exchange framework. The two new safe harbours included in this package are a permanent safe harbour for jurisdictions that introduce a Qualified Domestic Minimum Top-up Tax (QDMTT), and a transitional UTPR Safe Harbour, which provides the UPE Jurisdiction with relief from the application of the UTPR for fiscal years commencing on or before the end of 2025. Finally, the package also includes detailed administrative guidance on currency conversion rules, the substance based income exclusion and further guidance on the treatment of tax credits.  


Further information on the continuing work on international tax reforms is also available at:


Media enquiries should be directed to the Communications Office of the OECD Centre for Tax Policy and Administration.


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