Meeting for the third time in Rio on July 25 and 26, the G20 reaffirmed its strong commitment to fair global tax reform.
The G20 continues to play a crucial role in reshaping the international tax system to meet the challenges posed by economic globalization and digitization. By supporting the OECD's BEPS initiative, the G20 is focusing on two key pillars:
- - Reallocation of taxation rights: Digital companies will now be taxed where their consumers are located, even if they have no physical presence in those countries. A major step towards fairer taxation!
- - Global minimum tax rate: A minimum tax rate is introduced to prevent companies from taking advantage of tax havens. A key measure to put an end to the race to the bottom.
- These reforms aim to ensure that all companies pay their fair share of taxes, wherever they operate, while strengthening international cooperation to combat tax evasion. In this way, the G20 is leading the way towards a fairer, more transparent global tax system.