At their G20 summit in Rome over the weekend, the leaders requested the OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Sharing) to swiftly develop the model rules and multilateral instruments.
This was only one of the big challenges covered during the Summit. Much of the agenda is a prelude to COP 26 starting in Glasgow on November 1st. The absence of the Chinese and Russian Presidents was of some concern despite a virtual presence and representation.
Covid has been the most significant of the many challenges facing all global economies during the past two years. This looks to remain the case although Climate Change will loom large in the immediate weeks and the foreseeable future.
According to the OECD progress in important areas such as taxation through the framework for the BEPS model will ensure a fairer system the OECD Secretary-General Matthias Corman said pointing out it was an accomplishment.
The agreement also establishes for the first time a global minimum corporate tax rate of 15% that will see countries collect around USD 150 billion in new revenues annually.
Italy has through its various inputs to the G20 has set a high benchmark for the Indonesian Presidency in 2022 and then India in 2023. These two Asian countries with a combined population of close to 2Billion and a massive number of small enterprises bring about a new era for big issues ahead.
Tax, jobs, and digitization will all need to be among the recovery priorities as a new kind of economy emerge one that will need to respect the environment and climate.
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