G20 Leaders Advocate for Global Tax Unity Amid US Rejection

G20 leaders are advocating for a cohesive approach to global minimum taxes and addressing tax challenges linked to digitalisation. They emphasize the preservation of tax sovereignty and propose a new OECD framework to enhance international tax transparency, despite the US opting out of the global tax deal.

The G20 leaders have committed to a collaborative effort to address the emerging global tax challenges, particularly those arising from the digitalisation of economies. This initiative aims to establish a fair tax system while maintaining the tax sovereignty of each nation.

The summit, held in South Africa, witnessed a call for a new framework by the OECD that will enhance international tax transparency on immovable property, allowing jurisdictions to opt-in voluntarily. This is seen as a key step in reinforcing global tax cooperation.

Amid these efforts, the US, under President Donald Trump, has chosen to distance itself from the global tax agreement, prompting other nations to reconsider their stance. The declaration highlighted a continued commitment to ensure that substantial risks to a level playing field are mitigated and that tax challenges related to the digital economy are constructively addressed.

(With inputs from agencies.)