On 11 July 2022 the OECD published the Secretary General’s report to the G20 Finance Ministers and Central Bank Governors for their July 2022 meeting.
Two-pillar international tax deal
The report notes that the technical work on the 15% global minimum corporate tax rate has been mostly completed. An Implementation Framework to facilitate implementation will be put together later in 2022. A number of countries including the European Union, a number of G20 countries and others have drawn up plans to introduce the global minimum tax rules.
In relation to Pillar One the report notes that the main rules have been released for public consultation, to ensure that the rules are properly drafted and benefit from public and inter-governmental consultation before they are finalised. The revised deadline requires the work to be completed by the first half of 2023.
The OECD Secretariat Progress Report on Amount A of Pillar One is included as an Annex to the report.
Tax and development
Work continues on the implementation of the BEPS package and on tax and development, to ensure that all Inclusive Framework members including developing countries can participate significantly in the work. The Indonesian Presidency is working with the OECD on a G20/OECD Roadmap for Developing Countries and International Tax, and this will be presented at the G20 meeting in October 2022.
Transparency
The report notes that progress has been made on monitoring the implementation of the automatic exchange of information, and fewer jurisdictions are failing to implement the tax transparency standards.
Information on at least 111 million financial accounts worldwide was exchanged automatically between administrations in 2021, representing total assets of nearly EUR 11 trillion.
A new Crypto-Assets Reporting Framework, together with amendments to the OECD Common Reporting Standard, is to be completed in time for the G20 meeting in October 2022. This will provide the framework for the automatic exchange of information on crypto-assets and will increase transparency in the area.
Climate change
The report argues that more effective action is required on climate change as current policy approaches are not sufficient to meet the Paris Agreement climate objectives. The number of different climate approaches used in different countries makes it difficult to understand their combined global impact.
The report notes the launch of the OECD’s Inclusive Forum on Carbon Mitigation Approaches. This allows the sharing of data and methods to support dialogue on efforts to reach net zero emissions. Data and information sharing will improve over time and reveal more information about the comparative effectiveness of different carbon mitigation approaches. By sharing best practices countries will be better able to take on a coordinated approach to carbon mitigation. The Forum can also promote greater effectiveness of combined carbon mitigation efforts by taking action to avoid any negative spillovers that could hinder progress.
