G20 finance ministers, central bank governors commit to ongoing discussions on Pillar Two global minimum tax concerns

They expressed their commitment to continuing constructive engagement to address concerns surrounding the Pillar Two global minimum taxes.

The G20 Finance Ministers and Central Bank Governors issued a Communique following their meeting held on 17–18 July 2025 in Durban, South Africa.

Regarding international taxation, the Communiqué reads:

International Taxation

We will continue engaging constructively to address concerns regarding Pillar Two global minimum taxes, with the shared goal of finding a balanced and practical solution that is acceptable for all.

Delivery of a solution will need to include a commitment to ensure any substantial risks that may be identified with respect to the level playing field, including a discussion of the fair treatment of substance-based tax incentives, and risks of base erosion and profit shifting, are addressed and will facilitate further progress to stabilise the international tax system, including a constructive dialogue on the tax challenges arising from the digitalisation of the economy. These efforts will be advanced in close cooperation across the membership of the OECD/G20 Inclusive Framework (IF), preserving the tax sovereignty of all countries.

We look forward to the OECD and Global Forum stock take report on tax transparency; the IF stock take report on BEPS; the OECD report on the exchange of real estate information on a voluntary basis to combat tax evasion and avoidance; the Platform for Collaboration on Tax (PCT) report on the progress in strengthening capacity-building frameworks to enhance technical assistance; and the IMF report on strengthening revenue administrations to improve domestic revenue mobilisation (DRM). We welcome the announcement of the PCT to hold the Tax and Development Conference, with a focus on DRM, in Tokyo next year.

Recalling the G20 Rio de Janeiro Ministerial declaration on International Tax Cooperation, we welcome the IF’s decision to adopt a phased, evidence-based approach to explore global mobility and understand the interaction between tax policy, inequality and growth. We also welcome discussions to enhance the effectiveness and inclusivity of the IF.

We note the ongoing negotiations to establish a United Nations Framework Convention on International Tax Cooperation and the participating G20 members reaffirm the objectives to reach broad consensus and build on existing achievements, processes and on the ongoing work of other international organisations, while seeking to avoid unnecessary duplication of efforts.

The first G20 Finance Ministers and Central Bank Governors meeting (FMCBG) took place on 26-27 February 2025 in Cape Town under South Africa’s Presidency.