On 5 June 2021 the Group of Seven (G7) issued a statement which gives significant momentum to the negotiations between the 139 jurisdictions in the Inclusive Framework on BEPS (base erosion and profit shifting), led by the OECD and the Group of Twenty (G20).
The G7 includes the United States, Japan, Germany, France, the United Kingdom, Canada and Italy, and their resolution of several long-standing disagreements removes key obstacles to the ultimate global agreement. The intention is to reach a global agreement on updated international tax rules for release at the G20 Finance Ministers meeting in early July.
If agreement is achieved, this would be the culmination of many years of work to seek global compromise and would arguably represent the biggest change to international tax rules in over 100 years.
Read a summary of key takeaways and the potential impact on Asia Pacific and beyond.