16/12/2022 – Azerbaijan joins international efforts against tax evasion and avoidance by joining the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS).
Collaborating on an equal footing with all other members of the Inclusive Framework, Azerbaijan will participate in the implementation of the BEPS package of 15 measures to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment.
Through its membership, Azerbaijan has also committed to addressing the tax challenges arising from the digitalisation and globalisation of the economy by joining the two-pillar plan to reform the international taxation rules and ensure that multinational enterprises pay a fair share of tax wherever they operate. Over 135 countries and jurisdictions participate to date in the agreement.
Under the two-pillar package, Pillar One aims to ensure a fairer distribution of profits and taxing rights among countries with respect to the largest multinational enterprises (MNEs). Taxing rights on more than USD 125 billion of profit are expected to be reallocated to market jurisdictions each year, with developing country revenue gains expected to be greater than those in more advanced economies, as a proportion of existing revenues. Pillar Two seeks to put a floor on competition over corporate income tax, through the introduction of a 15% global minimum corporate tax rate that will apply to companies with revenue above EUR 750 million.
Countries are aiming to sign a multilateral convention for implementation of Pillar One by mid-2023, for entry into force in 2024. For Pillar Two implementation, a number of countries have begun the process of incorporating the global minimum tax rules into domestic legislation to be effective in 2023.
The full list of members of the OECD/G20 Inclusive Framework on BEPS can be found at: www.oecd.org/tax/beps/inclusive-framework-on-beps-composition.pdf
Further information is available at: https://oe.cd/beps