On 10 July 2021, the G20 endorsed that broad framework for Pillars 1 and 2 and the ambitious timetable for bringing the new rules into force in 2023. This was expected, given the 1 July 2021 agreement reached on by the OECD Inclusive Framework (which includes all G20 members). There is now broad political consensus for a substantial revision to global tax policy.
That said, the political consensus is couched in general terms and the details of the framework have yet to be arrived at for sign off at the G20 meeting to be held at Halloween. Even if final political agreement can be reached, there remains the practical issue of implementation, in particular in the US. Pillar 1 is to be implemented through a new multilateral income tax treaty, proposed to be signed and ratified by the end of 2022. This would be a new development for the US. It did not sign up to the BEPS 1.0 MLI. Treaty ratification in the US requires ratification by two-thirds of the US Senate and so is likely to be politically challenging. Implementation in the EU may also be challenging, given the refusal by three EU Member States, Ireland included, to sign the Inclusive Framework agreement and Cyprus' stated opposition to Pillars 1 and 2.
Notably from an Irish perspective, the communique issued by the G20 expressly called upon all members of the Inclusive Framework that have not yet joined the international agreement to do so. After talks with US Treasury Secretary on 12 July, the Irish finance minister Paschal Donohue said that Ireland remains "very, very committed to the process". He said that he and the US Secretary "understand how important the agreement is and both of us understand the work that does need to be done to hopefully get to a better place and to an agreement in October".
EU Commissioner Paolo Gentiloni recognised the Irish willingness to continue constructive engagement with the process. He said that "we fully respect the importance of the challenge that, for Ireland, this kind of issue represents, and we appreciate the engagement of the Irish government". Following the meeting with the US Treasury Secretary the EU announced its decision to put on hold its proposal for the introduction of an EU wide digital services tax, with German finance minister Olaf Scholz noting that the EU’s decision was "a sign that we are now really making the progress to get a global agreement".