Monday, January 24, 2022

Tax reform tops agenda as G20 finance chiefs meet in Venice

Finance ministers and central bankers from the group of 20 rich countries will meet face to face on Friday for the first time since the start of the COVID-19 pandemic at a gathering in Venice where corporate tax reform will top the agenda.

 

The G20 is expected to give its political endorsement to plans for new rules on where and how much companies are taxed which were backed last week by 130 countries at the Paris-based Organisation for Economic Cooperation and Development.

The deal envisages a global minimum corporate income tax of at least 15%, a level which the OECD estimates could yield around $150 billion in additional global tax revenues, but leaves much of the details to be hammered out.

Officials say the two-day gathering in Italy’s historic lagoon city will open a discussion on how to put the OECD proposals into practice, with the aim of reaching a final agreement at a Rome G20 leaders’ summit in October.

The G20 members account for more than 80% of world gross domestic product, 75% of global trade and 60% of the population of the planet, including big-hitters United States, Japan, Britain, France, Germany and India.

If all goes to plan, the new tax rules should be translated into binding legislation worldwide before the end of 2023.

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