In a historic development, on 1 July 2021, 130 countries
agreed to a broad framework for solutions to address tax challenges
arising from digitalisation of the economy. Importantly, the
solution envisaged does not restrict itself to the digital economy
and could substantially reform the present international tax
framework. This article is the first in a new series where we track
the latest developments with respect to this historic global tax
deal and its implications for businesses.
HISTORIC DEAL ACHIEVES NEAR-GLOBAL CONSENSUS ON INTERNATIONAL
TAX REFORM
Introduction
Recently, majority member countries of the OECD/G20 Inclusive
Framework on Base Erosion and Profit Shifting (BEPS-IF) agreed to
the "Statement on a two-pillar solution to address tax
challenges arising from the digitalisation of the
economy" (Statement). Out of 139 BEPS-IF member
countries, 132 countries (which comprise all G20 countries) have
agreed to the Statement as of 14 July 2021. This means
