Turkiye backs G20's agenda on int'l taxation

By Aysu Bicer

ANKARA (AA) - Turkiye on Friday voiced support for the G20's efforts on international taxation, urging members to help build the capacity of developing countries to comply with new international tax architecture.

In a written statement, Turkish Treasury and Finance Minister Nureddin Nebati said international taxation was one of the areas in which the G20 had shown the most success.

"We've always believed that reaching consensus on the solution for challenges arising from the digitalization of the economy is crucial, said Nebati.

He added that though Ankara has concerns regarding the first part of an international two-pillar solution to tackle the tax challenges stemming from an increasingly globalized and digitized economy, it "joined the consensus for the sake of compromise."

Under the first part of this plan, agreed last year after a ministerial meeting in London between Canada, France, Germany, Italy, Japan, the UK, and US, the largest and most profitable multinational corporations will be required to pay tax in the countries where they operate and not just where they have their headquarters.

The second part, dubbed Pillar Two, involves a global minimum corporate tax of at least 15% on a country-by-country basis.

Underlining the significance of the G20's support for the plan, which is called the Inclusive Framework on Base Erosion and Profit Shifting, he said: "Designing sound principles and clear rules is very important. Therefore, we should provide enough room to relevant working groups in the Inclusive Framework for necessary technical work."