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Indonesia rallies G20 to tackle tough tax issues
The topics include the taxation of multinational companies, a global minimum corporate tax, gender-conscious taxation and environmental taxation.
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Bank Indonesia governor Perry Warjiyo (left) and Finance Minister Sri Mulyani Indrawati (right) give a statement on the start of Indonesia's G20 presidency in Bali on Thursday. (Finance Ministry/Public relation team)
Indonesia is seeking to rally the Group of 20 nations to reach agreements on four intractable global taxation issues, hoping to clinch certain deals before the country’s G20 presidency ends in December of next year.
Indonesia will raise the issues of the taxation of multinational companies’ profits, a 15 percent global minimum corporate tax, environmental taxation and gender-conscious taxation over the course of its one-year presidency of the body, which started on Dec. 1.
Wempi Saputra, an advisor on macroeconomics and international finance for the finance minister, told reporters on Friday that G20 nations had agreed to speed up deal making on the first two issues, discussions of which had started last year under the presidency of Italy.
The latter two issues had been proposed by Indonesia, but delegates had only warmed up to the gender taxation issue, he said, whereas discussions on environmental taxation had not shared the same success.
"For countries doing the deliberation, this is still a dynamic issue," he said.
Read also: WHO urges Indonesia-led G20 to tackle pandemic funding gap
Indonesia expected the G20 to sign a convention on the taxation of multinational corporations’ profits by mid-2022, followed by ratifications in each member country. Under such an agreement, multinationals could be required to pay taxes on profits in countries where their goods and services are sold and not just those in which they officially operate.
