Government of Jamaica
MINISTRY OF FINANCE & THE PUBLIC SERVICE
Kingston, Jamaica: Friday, November 12, 2021
Ministers of finance and senior officials from countries in various regions across the world gathered virtually on November 10th for a roundtable event chaired by Minister of Finance and the Public Service, Dr. Nigel Clarke, to assess how developing countries could benefit fully from recent developments in international tax cooperation. The meeting was held in cooperation with the Organisation for Economic Co-operation and Development (OECD).
The discussions took place at a time when the global tax landscape is evolving quickly, particularly as developing countries are experiencing constrained fiscal space due to the global pandemic and there is therefore an urgency to ensure that developing countries benefit from new opportunities, including international tax matters.
The Ministers discussed the progress made by developing countries since the establishment in 2016 of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”), an international collaboration of 141 countries and jurisdictions working on an equal footing to prevent profit shifting by large multinational enterprises. They noted the positive impact that developing countries have had on the Two-Pillar Solution agreed by 137 countries and jurisdictions to address the tax challenges arising from the digitalisation of the economy, with representatives from Italy and Indonesia – as the outgoing and incoming G20 presidencies – noting their commitment to focus attention on the needs of developing countries.
Within this context, Ministers agreed the following priority action areas:
The development of a comprehensive and bespoke technical assistance programme to support developing countries in implementing the recently agreed Two-Pillar Solution, in order to ensure that developing countries benefit fully from the reform of the international tax rules.
The review of the specific circumstances of small island developing states that have significant financial services industries and may see an economic impact from the adoption of the global minimum corporate tax.
The need to take the circumstances of developing countries into account in implementing the BEPS agenda.
The need to further realise equal footing and to strengthen the voices of developing countries, by reconsidering the governance structure of the OECD/G20 Inclusive Framework on BEPS, to be more representative of developing countries.
The assessment of other global taxation matters (such as climate action through carbon pricing and the digitalisation of tax administration) and how they could benefit from a multilateral approach.
Minister Clarke noted, “Developing countries need to be more appropriately represented in the governance structure of the OECD/G20 Inclusive Framework for it to be truly inclusive. Our domestic resource mobilisation priorities are not always in perfect alignment with that of developed countries, and we often face capacity constraints in the implementation of multilateral agreements and conventions. In the interest of advancing the international tax cooperation agenda, inclusive of the Two Pillar solution, it is therefore critical that developing countries have access to capacity and to technical assistance and that developing countries tangibly benefit from these reforms”.
The outcomes of the Roundtable can be found on the Ministry of Finance’s website (Chair’s Statement of Outcomes – Ministerial Dialogue on Tax & Developing Countries) and will be delivered to the Chair of the G20/OECD Inclusive Framework, in the form of an open letter, for consideration among the wider Inclusive Framework membership.
For further information contact:
Communication & Public Relations Branch
Ministry of Finance and the Public Service
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