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OECD Tax Talks #3 - 22 September 2016


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With a number of important recent and upcoming developments in the OECD's international tax work, we invite you to join the OECD's Centre for Tax Policy and Administration (CTPA) for the latest tax update.

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OECD Tax Talks #3 - 22 September 2016

  1. 1. OECD Tax Talks CENTRE FOR TAX POLICY AND ADMINISTRATION 22 September 2016 3:00pm – 4:00pm (CEST)
  2. 2. Ask questions and comment throughout the webcast 2 Join the discussion Via e-mail Via Twitter using #OECDTaxTalks
  3. 3. 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 3 Today’s topics and speakers
  4. 4. • G20 Hangzhou Summit – Tax Transparency – BEPS – Tax Policy • Recent developments – State Aid cases – Common Transmission System for exchanges – Multilateral Instrument 4 International Tax Agenda
  5. 5. 5 Multilateral Instrument
  6. 6. • 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
  7. 7. • 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 7 Next steps
  8. 8. 8 G20 Tax Policy Agenda
  9. 9. 9 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.”
  10. 10. - 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 10 Tax Certainty
  11. 11. 11 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 further work on Inclusive Growth - Release of the OECD Taxation Working Paper on Tax Design for Inclusive Economic Growth
  12. 12. Tax Policy Reforms in the OECD Inaugural Edition 12
  13. 13. • 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 13 Tax Policy Reforms in the OECD
  14. 14. 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 14
  15. 15. 15 Growth-oriented tax reforms 3 3 7 11 14 9 3 15 7 14 6 1 1 5 -20 -15 -10 -5 0 5 10 15 PIT SSCs CIT VAT Excise duties Env. Taxes Property taxes Number of countries expecting revenue decreases Number of countries expecting revenue increases Estimated revenue effects of tax reforms in 2015
  16. 16. 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 16
  17. 17. What’s next? 17
  18. 18. • 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) 18 What’s next?