G20 leaders set out objectives for international tax policy

The final communique of the G20 leaders’ summit on 30 November and 1 December 2018 focused on the future of work; infrastructure for development; a sustainable food future; and a gender mainstreaming strategy across the G20 agenda.

The communique noted that to maximize the benefits of digitalization and emerging technologies for innovative growth and productivity the G20 will promote measures to boost micro, small and medium enterprises and entrepreneurs in addition to bridging the digital gender divide and improving digital infrastructure and measurement of the digital economy.

The G20 leaders repeated their determination to work for a globally fair, sustainable, and modern international tax system based on tax treaties and transfer pricing rules. They welcomed initiatives for pro-growth tax policies and emphasized the importance of global implementation of the OECD/G20 Base Erosion and Profit Shifting (BEPS) package. A consensus-based solution will be sought to address the impact of the digital economy on the international tax system. An update is to be compiled in 2019 and a final report by 2020.

The leaders noted the commencement of the automatic exchange of financial account information and stronger criteria to identify jurisdictions that have not satisfactorily implemented the tax transparency standards. The communique noted that all jurisdictions should sign and ratify the multilateral Convention on Mutual Administrative Assistance in Tax Matters. The G20 will continue to support tax capacity building in developing countries and the communique mentions the work of the Platform for Collaboration on Tax which is a venture by the OECD, UN, IMF and World Bank..