In a statement issued on July 1, 2021, the OECD/G20 Inclusive Framework on base erosion and profit shifting (BEPS) said 130 of its 139 member countries have agreed on a framework to reform international tax rules under a two-pillar approach. This agreement reflects a significant departure from the standard international tax rules which largely require a physical presence in a country before that country has a right to tax and do not set a floor for tax competition by stipulating a minimum rate.

The statement provides the key terms for a high-level agreement of the two-pillar approach to international tax reforms and calls for a comprehensive agreement by the G20 Finance Ministers and Central Bank Governors meeting in October 2021, with changes coming into effect in 2023.

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