Chairman Kobayashi’s Comments on International Tax Reform

October 14, 2021

One hundred and thirty six countries and jurisdictions, including members of the Organisation for Economic Co-operation and Development (OECD), recently reached a final agreement on a new framework for international taxation. The agreement was also endorsed at the G20 Finance Ministers and Central Bank Governors Meeting.

This is a historic agreement toward the establishment of a more stable and fairer international tax system involving the revision of principles of international taxation that have lasted for about 100 years. The measures to be taken include the setting of a global minimum corporate tax rate and the introduction of digital services taxes that target the IT giants. I would like to express my deep respect for everyone involved in the governments of the countries and regions concerned, particularly the Japanese government, which has made persistent efforts to build consensus since the launching of the BEPS project in 2013.

I hope that our government will begin taking the steps necessary to prepare for the new framework’s launch in 2023. This will mean working closely with other countries on the steady formulation of international treaties and domestic legislation.