Togo becomes the 140th country to join the OECD/G20 Inclusive Framework on Erosion and Profit Shifting

Economic governance
Wednesday, 01 September 2021 16:04
Togo becomes the 140th country to join the OECD/G20 Inclusive Framework on Erosion and Profit Shifting

(Togo First) - Togo has joined the OECD/G20 Inclusive Framework on base erosion and profit shifting (BEPS). It was disclosed on the OECD's official portal.   

Togo is the 140th country to join the tax reform. Doing so, it commits to implementing the 15 reforms the OECD recommends to tackle tax avoidance and regulate multinationals' activities. 

"Through its membership, Togo has also committed to addressing the tax challenges arising from the digitalization of the economy by joining the two-pillar plan to reform the international tax rules and ensure that multinational enterprises pay a fair share of tax wherever they operate, bringing to 134 the total number of jurisdictions participating in the agreement," the OECD said.   

The first pillar of the two-pillar package will enable fairer distribution of profits and taxing rights among countries concerning the largest Multinational Enterprises (MNEs), including digital companies that operate, physically or not, and make profits in the West African country.  

The second pillar will introduce a global minimum corporate tax rate that countries can use to protect their tax bases. 

There are still many details Togo will look into regarding the two-pillar plan. An agreement should be signed by the end of October 2021 but it will be implemented in 2023. 

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