oecd tax talks #3 - 22 september 2016
TRANSCRIPT
OECD Tax TalksCENTRE FOR TAX POLICY AND ADMINISTRATION
22 September 2016
3:00pm – 4:00pm (CEST)
Ask questions and comment throughout the webcast
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Join the discussion
Via e-mail [email protected]
Via Twitter using #OECDTaxTalks
Update on:• International Tax Agenda• Multilateral Instrument• G20 Tax Policy Agenda• Tax Policy Reforms in the OECD • What’s next?
Presented by:• Pascal Saint-Amans, Director, Centre for Tax Policy and
Administration• Jesse Eggert, Senior Advisor on Base Erosion and Profit Shifting
Project • David Bradbury, Head of the Tax Policy and Statistics Division• Sarah Perret, Tax Economist
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Today’s topics and speakers
• G20 Hangzhou Summit– Tax Transparency
– BEPS
– Tax Policy
• Recent developments– State Aid cases
– Common Transmission System for exchanges
– Multilateral Instrument
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International Tax Agenda
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Multilateral Instrument
• Negotiation of MLI has progressed extremely well
– Main text agreed in principle in mid-September
– Fine-tuning and translation by November
• The Multilateral Convention to Implement Tax Treaty-Related Measures to
Prevent Base Erosion and Profit Shifting
• Overall structure:
– Provisions implementing each of the BEPS tax treaty-related measures
– Optional provision on mandatory binding MAP arbitration
– Flexible approach, with opt-ins, alternatives, and opt-outs (except for minimum
standards)
– Notifications will ensure clarity about interaction with existing treaty provisions
• The MLI will be accompanied by an Explanatory Statement 6
Multilateral Instrument
• Final meeting of Ad Hoc Group in late November to:
– Formally adopt text in French and English
– Approve text of Explanatory Statement
• After approval, the MLI will be made open for signature
• Signing ceremony will take place first half of 2017
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Next steps
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G20 Tax Policy Agenda
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G20 Tax Policy Agenda
G20 Tax Policy Symposium
• 23 July 2016, Chengdu, China
– Session 1: Increasing Tax Certainty
– Session 2: Inclusive and innovation-driven Growth
• G20 Leaders' Communique, Hangzhou Summit, 4-5 September 2016
“We emphasize the effectiveness of tax policy tools in supply-side structural reform for promoting innovation-driven, inclusive growth, as well as the benefits of tax certainty to promote investment and trade and ask the OECD and IMF to continue working on the issues of pro-growth tax policies and tax certainty. In this connection, China would make its own contribution by establishing an international tax policy research centre for international tax policy design and research.”
- Highlighted at the G20 Tax Policy Symposium
- Request from the G20 to work on tax certainty
- Timeline for future work
- G20 Finance Deputies Meeting, December 2016
- G20 Finance Ministers’ Meeting, March 2017
- G20 Leaders’ Summit, July 2016
- Commence consultation through a business questionnaire
- Launched in early October and responses to be received by December 2016
- Important opportunity for businesses to provide views and share experience
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Tax Certainty
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Tax and Inclusive Growth
- Strong interest at the G20 Tax Policy Symposium
• The need to reconcile growth and efficiency with addressing inequality
- Request from the G20 to carry out furtherwork on Inclusive Growth
- Release of the OECD Taxation Working Paper on Tax Design for Inclusive Economic Growth
http://www.oecd-ilibrary.org/taxation/
Tax Policy Reforms
in the OECD
Inaugural Edition
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• First edition of a new annual publication aimed at
providing an overview of tax reforms across the OECD
• This year’s edition covers the reforms that were
implemented, legislated or announced in 2015
• Next edition due by mid-2016, with additional countries
to be covered
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Tax Policy Reforms in the OECD
General findings
Focus on growth
• Fiscal consolidation: key driver of tax reforms post crisis • In 2015, shift back to focusing on growth with many countries reducing taxes
on labour and corporate income
International tax developments
• Many of the corporate and VAT reforms reflected the adoption of BEPS recommendations and the endorsement of the OECD International VAT/GST Guidelines
Top reformers
• Austria, Belgium, Greece, Japan, the Netherlands, Norway and Spain were the countries that implemented, legislated or announced the most comprehensive tax reforms in 2015
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Growth-oriented tax reforms
3 3
7
11
14
9
3
15
7
14
6
1 15
-20
-15
-10
-5
0
5
10
15
PIT SSCs CIT VAT Excise duties Env. Taxes Property taxes
Number of countriesexpecting revenuedecreases
Number of countriesexpecting revenueincreases
Estimated revenue effects of tax reforms in 2015
Trends: Tax-by-tax
Labour taxes
Personal capital income taxes
Corporate taxes
VAT and excise duties
Property taxes
Environmental taxes
• Taxes on labour income stabilised in 2015• Trend of declining labour taxes in 2016
• Several countries raised tax rates on dividends and other sources of personal capital income
• Renewed trend of CIT rate reductions• CIT base-broadening measures, including BEPS counter measures
• The post-crisis increase in standard VAT rates did not continue over the course of 2015
• Limited number of property tax reforms and no clear direction of reform
• Reforms limited mostly to tinkering with taxes on energy use and cars
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What’s next?
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• G20 Finance Ministers meeting: 6 October 2016
• BEPS Public Consultation: 11-12 October, on attribution of profits to permanent establishments and revised guidance on profit splits
• BEPS regional meetings: September – December 2016 (Uruguay, Tunisia, Lithuania, Philippines)
• AEOI: CRS bilateral exchange relationships
• Tax Policy:
– Release of Tax Certainty survey
– Upcoming publications: Effective Carbon Rates, and LAC Taxing Wages (26 Sept), Revenue Statistics, and Consumption Tax Trends (Nov)
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What’s next?
