Washington D.C.- National Foreign Trade Council (NFTC) Vice President for Tax Policy Cathy Schultz today issued the following statement following the culmination of a meeting of G-20 finance ministers in Japan over the weekend:
“There have been misleading press reports coming out of this weekend’s G-20 finance minister’s meeting in Japan regarding an agreement on taxation. At the meeting, the Finance Ministers of the G-20 gave their approval for the OECD to move forward with a proposed work program that has two pillars for changing the international tax system: 1) changing the nexus standards and reallocating profits between export countries and market jurisdictions; and 2) developing a minimum tax regime. This proposed Work Program will apply to all companies included in the parameters set out by the OECD working groups and will not be limited to digital companies as some press reports have suggested. The OECD project will rewrite many of the existing international tax rules governing most multinational corporations and the OECD anticipates completing the profit allocation project by the end of 2020.
“The NFTC will continue to work with the Administration and Congress as well as multinational organizations across the globe to ensure fair and equal tax treatment for our companies around the world.”