In a declaration issued at the end of last week’s St. Petersburg summit, G20 leaders stated that they “fully endorse” the Organisation for Economic Cooperation and Development’s (OECD) ambitious action plan for tackling base erosion and profit shifting (BEPS) and reforming the international tax system. G20 leaders called on members to examine how their own tax systems contribute to BEPS—asserting that “profits should be taxed where economic activities deriving the profits are performed and value is created” and “international and our own tax rules [should] not allow or encourage multinational enterprises to reduce overall taxes paid by artificially shifting profits to low-tax jurisdictions.”

In a “Tax Annex” to the declaration, the G20 reiterated the general and specific action steps set forth in the OECD plan, including the neutralization of hybrid mismatch arrangements, increased use of controlled foreign company rules, modification of treaty rules, and greater transparency and disclosure among and by governments and taxpayers.

Read the G20 declaration, the G20 tax annex, and the White House fact sheet.