In a momentous decision, the G20 leaders convened at the Bharat Mandapam in New Delhi on September 9, 2023, and resolved to expeditiously implement sweeping global tax reforms. These reforms encompass a comprehensive framework addressing the taxation of the digital economy and the establishment of a global minimum corporate tax rate, marking a pivotal juncture in international fiscal policy. The momentous New Delhi Summit Declaration, unanimously embraced by member nations, reflects their unwavering dedication to fostering a globally equitable, sustainable, and contemporary international tax system, attuned to the demands of the 21st century.
Leaders underscored the substantial advancements made in one of the core facets of this global tax transformation, recognized as ‘pillar one,’ which includes the drafting of a Multilateral Convention (MLC) text. This multilateral fiscal instrument is poised for formal endorsement in the latter half of 2023. Simultaneously, progress is underway on other facets of tax reform, operating under the umbrella of ‘pillar two.’
The declaration further articulates the leaders’ endorsement of the Global Anti-Base Erosion (GloBE) Rules, emphasizing the imperative of coordinated endeavors to build capacities that facilitate the effective execution of the two-pronged international tax package. It notably acknowledges the blueprint for additional support and technical assistance tailored for developing nations.
Amid this momentous tax reform agenda, G20 leaders have also urged the expeditious deployment of a Crypto-Asset Reporting Framework (CARF). Concurrently, they expressed an appreciation for strides taken in the domain of information exchange for tax-related purposes. Notably, the declaration signifies their commitment to vigilant monitoring of the swiftly evolving landscape of crypto-assets, backed by the Financial Stability Board’s (FSB’s) high-level recommendations for comprehensive regulation, supervision, and oversight of crypto-asset activities and markets, as well as global stablecoin arrangements. This endorsement includes a call to the FSB and other supervisory bodies to ensure consistent global implementation to thwart regulatory arbitrage.
Furthermore, the leaders extended a warm welcome to the IMF-FSB Synthesis Paper on crypto asset regulations, highlighting the multifaceted nature of their commitment to navigating the complexities of contemporary fiscal and financial landscapes.
This epoch-making declaration underscores the commitment of the G20 leaders to shape a global tax framework and regulatory landscape commensurate with the exigencies of our time. It’s a resounding call to action to establish a fair, resilient, and future-ready international fiscal ecosystem.
