The OECD said, on Thursday, 30 May, 2024, that governments around the world had recommitted to introducing the first pillar of a global tax deal on highly profitable multinationals at the G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) meeting in Paris.

Held from 28–30 May, 2024, over 400 delegates from 140 delegations including 127 countries and jurisdictions and 13 observers convened for the meet. Participants reiterated their commitment to signing the Multilateral Convention (MLC) for Amount A and a framework for the Amount B agreement by the end of June.

They also agreed to a signing ceremony for the Subject to Tax Rule that will take place in Paris on 19 September, 2024.

During the three days of meetings, the Inclusive Framework discussed a range of topics, including the implementation and impact of the BEPS minimum standards, opportunities to further broaden the reach of this impact through technical assistance and capacity building, the status of and experience with implementing the global minimum tax, and the ongoing tax policy work by the OECD.

Delegates also expressed their interest in the role of tax for addressing inequality.

Discussions were held on existing issues related to Pillar One of the Two-Pillar Solution to tackle the tax challenges posed by the digitalisation of the economy.

This multilateral treaty represents the first pillar of the two pillar 2021 deal, which includes plans to establish a global minimum corporate tax rate of 15%.

The US has historically opposed the national digital services taxes proposed by this treaty, citing that they unfairly target US-based digital corporations. If no agreement is reached, the withholding period on the national digital services taxes could expire in July, which can reintroduce these taxes and escalate trade tensions between the US and some of its European allies.

Recently, Italy’s Economy Minister Giancarlo Giorgetti expressed his pessimism that negotiations on the first pillar would not be finalised as planned in June, citing reluctance from the US, China, and India.

US Treasury Secretary Janet Yellen also expressed the same sentiment about the US, China, and India during last week’s G7 finance ministers’ meeting in Italy.

Yellen said the United States had “red line” issues regarding transfer pricing. She also said India “will not engage with us,” and China was “all but absent” in the talks.