Earlier this month, 136 jurisdictions out of the 140 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting joined the “Statement on the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy”. This updates and finalises a major reform of the international tax system at the OECD, which ensures that Multinational Enterprises (MNEs), will be subject to a minimum 15% tax rate from 2023 onwards. The MBA is closely monitoring these developments and has engaged with its member banks, and the Mauritius Revenue Authority to assess the impact of these changes on the banking and financial services sector. Countries are aiming to sign a multilateral convention during 2022, with effective implementation in 2023.
