The OECD’s Inclusive Framework on BEPS announced on October 12, 2020, that it will pursue its work plan on the tax challenges of digitalization until at least the middle of 2021 and probably beyond.
The work plan, which was reconfirmed by the G20 finance ministers on October 14, 2020, has two distinct parts or “pillars.” Pillar One calls for the creation of a new taxing right involving reallocation of part of a multinational’s profits to market countries, and expanded taxing powers for those countries at the expense of countries where production occurs. Pillar Two is a global minimum tax proposal for large multinationals.
Two “blueprints” of the pillars were published on October 12, 2020, each more than 200 pages in length. The 137 members of the Inclusive Framework have not yet agreed on all elements of the plans – hence the need to continue discussing them in 2021.