In addition, the meeting concurred on a global digital taxation mechanism.
The G20 nations have agreed to roll out two pillars of international taxation—digital sector and global minimum taxes—in 2023, Indonesian Finance Minister Sri Mulyani Indrawati has said.
“In the (FMCBG) meeting, the two pillars have been agreed to be implemented effectively starting 2023,” she informed at a press conference on Indonesia’s 2022 G20 Presidency here on Friday.
Digital sector taxation has been one of the most challenging global issues recently, she noted.
"In addition, the meeting concurred on a global digital taxation mechanism," the minister said.
For global minimum taxation, all countries will collaborate to prevent any attempts by companies that operate in several countries to avoid paying taxes, the minister noted.
She said that the enforcement of both the taxation pillars would be closely monitored.
However, it has been assessed that there will be many countries that will need technical assistance to implement them, establish related regulations, as well as improve the capacity of their national taxation authority, Indrawati said.
Hence, the participants at the meeting also agreed to provide support for capacity building for developing countries that need assistance in implementing the two types of taxes, she informed.
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There will also be various ministerial-level symposiums that will be held to discuss capacity-building efforts and maintain the consistent implementation of the taxation pillars, she said.
Indonesia hosted the Second 2022 G20 Finance and Central Bank Deputies (FCBD) Meeting on February 15–16, 2022, and the First 2022 G20 Finance Ministers and Central Bank Governors Meeting on February 17–18, 2022.
The Second 2022 G20 FCBD Meeting discussed communique drafting.
Meanwhile, the First 2022 G20 FMCBG talked about six agendas, including global economy and health, international financial architecture, financial sector issues, sustainable finance, financial infrastructure, and international taxation.
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