The G20 Finance Ministers and Central Bank Governors released their official Communiqué after their meeting in Washington DC, United States, on 23-24 October 2024.

Regarding international taxation cooperation, the Communiqué says that progressive taxation is one of the key tools to reduce domestic inequalities, strengthen fiscal sustainability, facilitate budget consolidation, promote [strong, sustainable, balanced and inclusive growth (SSBIG)], and facilitate the achievement of the [Sustainable Development Goals (SDGs)]. International tax cooperation is fundamental to encourage best practices, improve domestic tax administration capabilities, support national tax reforms, strengthen tax transparency, and strengthen national endeavours to effectively implement progressive taxation, including domestic income and wealth distribution, while considering domestic circumstances, needs, and priorities and respecting the sovereign right of countries to adopt and implement measures that they consider feasible. Broad tax bases and effective enforcement are the foundations of progressive tax systems.

In line with our landmark Rio de Janeiro Declaration on International Tax Cooperation endorsed on 25 July 2024, the ministers will continue to work together towards a fairer, more inclusive, stable, and efficient international tax system fit for the 21st century, restating our commitment to tax transparency and fostering global dialogue on effective taxation, including of ultra-high-net-worth individuals, among other issues. Consistent with the paragraph 13 of the Rio de Janeiro Declaration, and with full respect to tax sovereignty, they look forward to discussing potential areas of cooperation to ensure that ultra-high-net-worth individuals are effectively taxed and continue to encourage the Inclusive Framework on BEPS to consider working on these issues in the context of effective progressive tax policies.

The ministers and central governors recognise that improving Domestic Resource Mobilisation (DRM) is important to support the SDGs. They will continue to provide support to enhance DRM and capacity-building. Their international tax cooperation should be inclusive and effective and aimed at reaching broad consensus, maximising synergies among the existing international fora, while seeking to avoid unnecessary duplication of efforts. They will continue to encourage constructive discussions at the United Nations on the development of a Framework Convention on International Taxation Cooperation and its protocols.

Additionally, the OECD/G20 Inclusive Framework (IF) on BEPS has demonstrated the potential of international tax cooperation over the past decade. The ministers welcome the progress made on the Two-Pillar Solution under the IF on BEPS and reiterate our commitment to the October 2021 Statement of the IF and to the swift implementation of the Two-Pillar Solution by all interested jurisdictions. The ministers encourage IF members to expeditiously complete the negotiations on a final package on Pillar One by resolving the remaining issues on a framework for Amount B and allowing the Multilateral Convention (MLC) to be finalised and opened for signing as soon as possible.

The G20 ministers and central governors urged the IF to accelerate the technical work to facilitate implementation and administration of the MLC. With respect to Pillar Two, we welcome the first signing ceremony of the subject-to-tax rule (STTR) on 19 September as a significant milestone. Moreover, they welcomed progress made on the GloBE Rules as a common approach and will continue to support ongoing work to ensure coordination among countries implementing these rules.