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November 2, 2021

G20 leaders confirm commitment to global tax changes under BEPS 2.0

Executive summary

On 30-31 October 2021, the leaders of the G201 met in Rome for the G20 Summit. The G20 Rome Leaders’ declaration issued at the conclusion of the summit embraces the agreement reached in the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on global tax changes in connection with the BEPS 2.0 project as a historic achievement. The declaration also calls for swift action as contemplated in the implementation plan included in the agreement, with the aim of ensuring that the new rules come into effect globally in 2023.

Detailed discussion


On 8 October 2021, the OECD released a statement reflecting the agreement reached by 136 out of the 140 Inclusive Framework member jurisdictions on core design features of the two pillars of the BEPS 2.0 project and including an implementation plan setting out the additional work to come and the timeline for the new rules to come into effect (October Statement).2 This statement was endorsed by the G20 Finance Ministers in the communiqué issued on 13 October 2021 at the close of their meeting in Washington.3

G20 communiqué

The declaration issued on 31 October 2021, at the close of the G20 leaders’ summit, includes a paragraph supporting the October Statement of the Inclusive Framework:

The final political agreement as set out in the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy and in the Detailed Implementation Plan, released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on 8 October, is a historic achievement through which we will establish a more stable and fairer international tax system. We call on the OECD/G20 Inclusive Framework on BEPS to swiftly develop the model rules and multilateral instruments as agreed in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023. We note the OECD report on Developing Countries and the OECD/G20 Inclusive Framework on BEPS identifying developing countries’ progress made through their participation in the OECD/G20 Inclusive Framework on BEPS and possible areas where domestic resource mobilisation efforts could be further supported.


The two-pillar project to address the tax challenges arising from the digitalization of the economy contemplates significant changes in the overall international tax architecture under which multinational businesses operate. The confirmation by the G20 leaders of the political agreement on key components of the two pillars and their call for swift action is intended to encourage jurisdictions to move quickly to implement the new rules.

There is still significant work to be done in the Inclusive Framework on BEPS to develop the technical details and coordination of the new rules. However, model rules for the domestic law measures under development for Pillar Two (global minimum tax rules) will be finalized this month, according to the implementation plan. This would allow the European Commission to develop a draft Directive by 22 December 2021 to facilitate the coordinated implementation of the measures in the European Union.

It is important for companies to follow these developments closely as they unfold in the coming months and to evaluate the potential impact of the proposed international tax changes on their businesses. In addition, looking ahead, companies will need to monitor activity in relevant countries related to the implementation of the agreed rules through changes in domestic tax law and bilateral or multilateral agreements.


For additional information with respect to this Alert, please contact the following:

Ernst & Young Belastingadviseurs LLP, Rotterdam

Ernst & Young Belastingadviseurs LLP, Amsterdam

Ernst & Young Limited (New Zealand), Auckland

Ernst & Young Solutions LLP, Singapore

Ernst & Young LLP (United States), Detroit

Ernst & Young LLP (United States), Global Tax Desk Network, New York

Ernst & Young LLP (United States), New York

Ernst & Young LLP (United States), Global Tax Desk Network, San Diego

Ernst & Young LLP (United States), Seattle

Ernst & Young LLP (United States), Washington, DC



  1. The G20 includes the European Union and 19 individual countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom (UK), and the United States (US).

  2. See EY Global Tax Alert, OECD releases statement updating July conceptual agreement on BEPS 2.0 project, dated 11 October 2021.

  3. See EY Global Tax Alert, G20 Finance Ministers endorse 8 October BEPS 2.0 statement and call for swift implementation to secure entry into effect in 2023, dated 14 October 2021.