New Delhi, Sep 9 (SocialNews.XYZ) The G20 leaders in the Delhi Declaration on Saturday reaffirmed their commitment to pursue cooperation towards a globally fair, sustainable, and modern international tax system appropriate to the needs of the 21st century.
In the Delhi Declaration, the G20 leaders said, "We reaffirm our commitment to continue cooperation towards a globally fair, sustainable and modern international tax system appropriate to the needs of the 21st century."
It said that it remains committed to the swift implementation of the two-pillar international tax package.
"Significant progress has been made on Pillar One including the delivery of a text of a Multilateral Convention (MLC), and work on Amount B (framework for simplified and streamlined application of the arm’s length principle to in-country baseline marketing and distribution activities) as well as the completion of the work on the development of the Subject to Tax Rule (STTR) under Pillar Two," it said.
"We call on the Inclusive Framework to resolve swiftly the few pending issues relating to the MLC with a view to preparing the MLC for signature in the second half of 2023 and completing the work on Amount B by the end of 2023. We welcome the steps taken by various countries to implement the Global Anti-Base Erosion (GloBE) Rules as a common approach," it said.
It also said that we recognise the need for coordinated efforts towards capacity building to implement the two-pillar international tax package effectively and, in particular, welcome a plan for additional support and technical assistance for developing countries.
"We note the 2023 update of the G20/OECD Roadmap on Developing Countries and International Taxation. We call for the swift implementation of the CryptoAsset Reporting Framework ('CARF') and amendments to the CRS.
"We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes ('Global Forum') to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions, noting the aspiration of a significant number of these jurisdictions to start CARF exchanges by 2027 and to report to our future meetings on the progress of its work," it said in the declaration.
It also said that we note the OECD Report on Enhancing International Tax Transparency on Real Estate and the Global Forum Report on Facilitating the Use of Tax-Treaty-Exchanged Information for Non-Tax Purposes.
In a major breakthrough, the New Delhi Leaders' Summit Declaration was adopted on Saturday after consensus was reached among member states during the G20 Summit.