Sri Mulyani: Two Important Pillars Of International Taxation Will Be Effective From 2023

Minister of Finance, Sri Mulyani. (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati said that two pillars of international tax principles, namely in the digital sector and global minimum taxation, have been agreed and will begin to be implemented in 2023.

"The first and second pillars can be agreed and implemented as an effective policy in 2023," he said last weekend at the G20 virtual press conference.

According to the Minister of Finance, discussions on international taxation at the meeting of the Ministers of Finance and Central Bank Governors of G20 countries have made a lot of progress. The Minister of Finance explained that the first pillar related to taxation in the digital sector is one of the most tense issues among G20 countries and around the world.

"It has been agreed how the taxation mechanism, especially regarding the digital sector that moves internationally or globally," he said.

The second pillar regarding global minimum taxation is aimed at companies moving between countries where it is possible to avoid tax or tax avoidance and tax evasion or tax evasion.

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati said that two pillars of international tax principles, namely in the digital sector and global minimum taxation, have been agreed and will begin to be implemented in 2023.

"The first and second pillars can be agreed and implemented as an effective policy in 2023," he said last weekend at the G20 virtual press conference.

According to the Minister of Finance, discussions on international taxation at the meeting of the Ministers of Finance and Central Bank Governors of G20 countries have made a lot of progress. The Minister of Finance explained that the first pillar related to taxation in the digital sector is one of the most tense issues among G20 countries and around the world.

"It has been agreed how the taxation mechanism, especially regarding the digital sector that moves internationally or globally," he said.

The second pillar regarding global minimum taxation is aimed at companies moving between countries where it is possible to avoid tax or tax avoidance and tax evasion or tax evasion.

"How can all countries jointly avoid the steps taken by taxpayers to avoid taxation with the second pillar step, namely implementing a global minimum taxation and also a framework of cooperation," he said.

The Minister of Finance added that after the two pillars were agreed and implemented in 2023, monitoring would be carried out for their implementation.

In implementing the two pillars, the state treasurer said that there are many countries that need technical assistance, starting from building legislation or regulations to be able to carry out this agreement, as well as in terms of the capacity of the Directorate General of Taxes of each country.

"Therefore, in the G20 it was also agreed that there would be support for additional capacity or capacity building for developing countries that need assistance to implement the two pillars in accordance with the agreed time, which is called very ambitious, namely 2023," he explained.

On the other hand, the G20 will also make various steps, such as a symposium at the ministerial level, in order to discuss capacity building and the consistent implementation of the two pillars.

"How can all countries jointly avoid the steps taken by taxpayers to avoid taxation with the second pillar step, namely implementing a global minimum taxation and also a framework of cooperation," he said.

The Minister of Finance added that after the two pillars were agreed and implemented in 2023, monitoring would be carried out for their implementation.

In implementing the two pillars, the state treasurer said that there are many countries that need technical assistance, starting from building legislation or regulations to be able to carry out this agreement, as well as in terms of the capacity of the Directorate General of Taxes of each country.

"Therefore, in the G20 it was also agreed that there would be support for additional capacity or capacity building for developing countries that need assistance to implement the two pillars in accordance with the agreed time, which is called very ambitious, namely 2023," he explained.

On the other hand, the G20 will also make various steps, such as a symposium at the ministerial level, in order to discuss capacity building and the consistent implementation of the two pillars.