International Taxation

Since the London Summit in April 2009, the OECD has been at the forefront of fighting against tax evasion, ending bank secrecy and tax havens, and addressing tax avoidance by multinational corporations. OECD contributions to the G20 on tax have helped to reform, reshape and modernise the international tax architecture.

The OECD Secretary-General presents a report to G20 Finance Ministers and Leaders to update them on the progress of the international tax cooperation.

Base Erosion and Profit Shifting (BEPS)

Costing governments an estimated 100-240 billion USD in lost corporate income tax revenues per year, tackling BEPS effectively is a global issue, requiring a coherent global approach. 

For the first time ever in international tax matters, OECD and G20 countries worked together to develop the OECD/G20 BEPS Project to equip governments with domestic and international instruments needed to tackle tax avoidance.

At the request of G20 Leaders in 2015, the OECD developed the new Inclusive Framework on BEPS, now covering over 100 members representing a wide diversity of economic profiles, including a significant number of developing countries. All of the members participate on an equal footing, committed to implementing the BEPS measures, undertaking peer reviews concerning the BEPS minimum standards, and finalising the remaining standard-setting work, in particular in relation to transfer pricing. 

OECD’s focus will continue to be on the implementation of the BEPS measures, including through delivering additional guidance, as well as ongoing standard-setting work on key issues relating to transfer pricing.  At the request of the G20, the OECD also delivered an interim report on the implications of digitalisation for taxation in March 2018.

Global Forum on Transparency and Exchange of Information for Tax Purposes

Established in the early 2000s, the Global Forum on Transparency and Exchange of information for Tax Purposes has served its members (originally only consisting of OECD countries) in addressing the risks to tax compliance posed by non-cooperative jurisdictions. In 2009, in response to the G20’s call to strengthen implementation of the standards, the Global Forum now covers 150 members on equal footing and, through its in-depth peer-review process, monitors countries’ progress in implementation.

In 2014, the Global Forum adopted the Standard for Automatic Exchange of Financial Account Information in Tax Matters (the AEOI Standard) developed by the OECD working with G20 countries. To deliver a level playing field the Global Forum launched a commitment process under which 102 jurisdiction have committed to its implementation in time to commence exchanges in 2017 or 2018. With exchanges under the AEOI Standard having now commenced amongst almost 50 jurisdictions there has been a major shift in international tax transparency and the ability of jurisdictions to tackle offshore tax evasion.

Tax Certainty

In the context of international taxation, concerns over uncertainty in tax matters and its impact on cross-border trade and investment heightened. At the request of G20 Leaders in Hangzhou, the OECD and the IMF explored the nature of tax uncertainty, its main sources and effects on business decisions and outlines a set of concrete and practical approaches to help policymakers and tax administrations shape a more certain tax environment. A first report was delivered to G20 Finance Ministers in March 2017 and a follow-up report was presented in July 2018.