BAKU, Azerbaijan, February 15. Tax policy and administration have been transformed under the impact of globalization and digitalization in recent years, Senior Tax Advisor, Global Relations and Development Division, Organization for Economic Co-operation and Development's (OECD) Center for Tax Policy and Administration Andrew Auerbach said, Trend reports.
He made the remark during the forum themed "Tax system in the new period of development: strategic goals for a sustainable economy" held in Baku.
"Globally, these shifts occur once in a lifetime, indicating that tax authorities are increasingly coordinating with one another. Multilateral agreements and uniform regulations are becoming increasingly prevalent. The two-pillar agreement to handle tax difficulties associated with digitization is an excellent example of this, as it affects norms that have been followed for over 100 years," the senior advisor noted.
Auerbach noted that Azerbaijan has proved its commitment by signing the final agreement on the two-pillar solution in July 2023.
"The global minimum tax outlined in Pillar II is already in place in many nations, and many more plan to implement it next year," he stated.
"According to our estimates, by 2025, 95 percent of all major multinational enterprises will be subject to these rules. The effective and successful implementation of these rules in many jurisdictions requires a truly multilateral approach to tax administration, including the prevention and resolution of disputes. As up to $200 billion in additional tax revenue is at stake, the effective application of these rules can significantly impact state finances," the senior advisor added.
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