Original title: OECD: twin-pillar programme for the reform of the international tax system supported by 130 countries and jurisdictions
On the afternoon of July 1, local time, the Organization for Economic Cooperation and Development, based in Paris, France, announced that the (BEPS) inclusive framework for tax base erosion and profit transfer, which it coordinated, had made the latest progress in negotiations, and that the two-pillar plan for the reform of the international tax system had been supported by 130 countries and jurisdictions among the 139members of the framework. It represents more than 90% of the global economy.
According to the OECD, the "pillar one" of the programme is to ensure that large multinationals, including the digital industry, pay fair taxes in all markets where they conduct business activities and make profits, while the "pillar two" is to control fiscal and tax competition among countries through the establishment of the world's lowest corporate tax rate. It is estimated that if the tax rate were set at 15 per cent, it would generate an additional tax of about $150 billion a year at the global level.
The OECD also said that the parties involved in the negotiations had agreed to complete the outstanding technical issues in the programme in October this year and to develop a plan for the implementation of the programme in 2023. (front desk reporter Zou Heyi)