JAKARTA. The G7 countries encourage the drafting of a framework convention on international tax cooperation initiated by the United Nations (UN).
This was one of the conclusions of the meeting of Finance Ministers and Central Bank Governors of G7 countries that took place on Wednesday (17/4) in Washington DC, United States (US).
Previously, in December 2023, the UN planned to draft a Tax Convention to strengthen international tax cooperation that is more inclusive and effective.
However, as quoted from the G7 Finance Ministers and Central Bank Governors' Statement, the UN Tax Convention can be implemented through a consensus. "We emphasize the importance of prioritizing issues that are more likely to reach consensus," as quoted in the document.
Furthermore, the G7 requested the UN Tax Convention to focus more on increasing domestic resource mobilization and capacity building in taxation issues for developing countries.
In addition to discussing the UN Tax Convention, during the meeting, the G7 countries also implemented the Two Pillars as a tax solution for the development of the digital economy initiated by the OECD and the G20.
More specifically, the G7 hopes that the first Pillar multilateral convention on the sharing of global taxing rights can be made by the end of June 2024. "We call on all members of the Inclusive Framework to make every effort to achieve this goal," he said.
Related to Pillar Two on the implementation of a global minimum tax, the G7 welcomes several countries or jurisdictions that have announced their plans to ratify and implement it. (ASP/KEN)
