G20 Celebrates Historic International Tax Cooperation, Punts Proposed 2% Billionaire Tax

OECD, Statement by the Secretary-General on the Rio de Janeiro G20 Ministerial Declaration on International Tax Cooperation:

For the first time in its history G20 Members have agreed [to] a comprehensive stand-alone Tax Declaration, reflecting the transformational achievements of international tax cooperation to date, the importance of that cooperation and its commitment to continue to carry it forward.

I commend the Brazilian G20 Presidency on this remarkable achievement and G20 members for reaching consensus on this historic text in the spirit of inclusive and effective international tax cooperation.

It has been an opportunity to reflect on the significant progress already realised over more than a decade of multilateral discussions in the G20 and the Inclusive Framework on Base Erosion and Profit Shifting.

The Rio de Janeiro G20 Ministerial Declaration on International Tax Cooperation highlights the OECD’s work to make international tax arrangements fairer and work better, including through the “landmark achievement” of the automatic exchange of information through the Global Forum on Transparency and Exchange of Information for Tax Purposes.

We warmly welcome the commitment of all G20 Finance Ministers, reflected in the Declaration to finalise and swiftly implement the Two-Pillar Solution in line with the October 2021 statement of the Inclusive Framework.

We urge G20 Members to expeditiously resolve any outstanding issues to ensure the Multilateral Convention to implement Pillar 1 can be finalised and opened for signature as soon as possible.

The final Communiqué of the third G20 Finance Ministers and Central Bank Governors meeting also reiterates members’ commitment to the October 2021 Statement of the OECD/G20 Inclusive Framework and to the swift implementation of the Two-Pillar Solution, commending the work to implement the Two-Pillar Solution as a “resounding success of international taxation cooperation.”

• Bloomberg, G-20 Finance Chiefs Punt on Billionaire Tax in Draft Communique
• Law360, G20 Declines To Back Brazil's Plan For A Minimum Wealth Tax
• Politico, G20 Countries Agree on Need to Tax the Super-Rich — But Later
• Reuters, G20 Agree to Work on Brazil's 'Billionaire Tax' Idea, Implementation Seen Difficult
• Washington Post, G20 Finance Ministers Agree to Work Toward Effectively Taxing the Super-Rich

Prior TaxProf Blog coverage:

• Gabriel Zucman To G20: Coordinated Minimum Tax On World's 3,000 Billionaires Would Raise $250Billion/Year (June 26, 2024)

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