G7 finance leaders have reaffirmed their support for the global minimum tax framework and called for deeper cooperation on digital economy taxation challenges, with the OECD expected to deliver a progress report by year-end.
The G7 finance ministers and central bank governors convened on 18 May 2026, issuing a communiqué that reinforces their commitment to international tax cooperation and digital economy challenges.
The ministers endorsed the OECD/G20 Inclusive Framework’s Global Minimum Tax Side-by-Side Package, viewing it as essential for maintaining tax certainty and creating fair competition among nations. The framework aims to safeguard national tax revenues while combating base erosion and profit shifting.
The communiqué highlighted the need for continued coordination on digital economy taxation issues. Ministers stressed the importance of unified implementation strategies and collaborative problem-solving approaches. The OECD has been tasked with delivering a comprehensive progress report by the end of 2026, which will outline developments and potential pathways forward for addressing tax challenges in the digital sector.
Regarding international taxation, the G7 finance ministers and central bank governors mentioned the following in their communiqué:
We welcome the OECD/G20 Inclusive Framework’s (IF) Global Minimum Tax Side-by-Side Package and note the importance of its implementation in reinforcing our shared commitment to secure certainty and stability, promote growth, ensure a level playing field, preserve tax sovereignty and protect tax bases against base erosion and profit shifting (BEPS).
Building on this success, we are engaged in a constructive dialogue on the taxation of the digital economy. In view of these principles, we expect this dialogue to reach a shared understanding of challenges posed to the existing international tax system by the digital economy and consider how such challenges could be addressed effectively.
As we value international cooperation we encourage and support the IF to pursue in-depth work on the taxation of the digital economy, drawing on lessons learnt from previous work. We look forward to a report by the OECD on the progress of the IF’s work by the end of 2026 which identifies a shared understanding of any challenges posed to the existing international tax system by the digital economy with a view to enabling IF members to assess how to ensure an effective and durable solution to such challenges.
