18/04/25

TAX: OECD/G20 Inclusive Framework issues statement following plenary meeting

As published on: globaltaxnews.ey.com, Friday 18 Aprill, 2025.

The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on BEPS issued a statement on 11 April 2025, following its meeting in Cape Town, South Africa. The brief statement notes topics discussed during the meeting, covering ongoing and future work agenda items of the Inclusive Framework.

Detailed discussion

The Inclusive Framework's brief public statement released following its 7-10 April 2025 meeting provides a very high-level report identifying key discussion topics at the 17th plenary meeting in Cape Town. The statement refers to the meeting as celebrating the 10th anniversary of the release of the final reports in the BEPS project in 2015.

With respect to the BEPS 2.0 project, the statement reports: "Members recognised the critical importance of securing certainty and stability in the international tax system, in particular with respect to the implementation of Pillar Two and the ongoing Pillar One negotiations, agreeing to continue discussions in furtherance of this objective."

The statement also indicates that members recognized the value of the Inclusive Framework as a platform for collaboration, noting the opportunity to explore new areas of common interest (e.g., global mobility and the interaction between tax, inequality and wealth) and welcoming improvements in the Inclusive Framework's operating processes and governance.

According to the statement, members agreed to review the BEPS work to date and shared initial ideas to help shape a report that is anticipated to be delivered to the G20 later this year (2025).

Implications

This plenary meeting was the first Inclusive Framework meeting since United States (US) President Trump issued an Executive Order on the OECD "Global Tax Deal." (See EY Global Tax Alert, US issues Executive Order on BEPS 2.0, dated 23 January 2025.)

The Inclusive Framework statement indicates that member jurisdictions recognize the critical importance of certainty and stability with respect to implementing Pillar Two and the ongoing negotiations on Pillar One and have agreed to continue discussions in furtherance of this objective. Affected companies should monitor developments as these discussions continue and consider engaging with policymakers in the countries where they operate.

The statement also references future work of the Inclusive Framework, including a review of the BEPS work to date and potential exploration of new areas of common interest. Stakeholders may want to look for opportunities to provide input on particular areas where collaborative efforts could reduce complexity and enhance certainty for businesses.

Tags

OECD G20