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One of the biggest tasks Indonesia must resolve in its Group of 20 presidency is international taxation reform.
The completion of the Finance and Central Banks Deputies (FCBD) meetings in December, which is part of the country’s G20 presidency until it ends in late 2022, also leaves the same question: Can the mandate of the Two-Pillars Approach of Digital Taxes as a solution to a fairer international tax system be initiated? Could it be implemented at the end of Indonesia's G20 presidency in 2022 or will it just be mere jargon, like the Kyoto Protocol?
The two-pillar approach is an inclusive package framework initiated by 130 countries and released by the Organization for Economic Cooperation and Development (OECD) Secretariat on Oct. 12, 2020, and accepted by the G20 in July. This package is the implementation of the Base Erosion and Profit Shifting Action 1 Report, Addressing the Tax Challenges of the Digital Economy”.
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