Ministry of Finance assess impact for global tax reform proposal

Global epidemics and economic impact

Ministry of Finance officials assessing the impact of G7 leader nations proposals on global tax reform and what implications they may have on the country’s domestic tax regime.

The G7 nations agreeing to endorse global tax system reform calls by inter-alia, the introduction of a global minimum corporate tax rate for multinational entities. The discussion on reforming the international taxing structure for multinational entities is being directed by the 24 member OECD/G20 steering group of the inclusive framework on base erosion and profit shifting or BEPS.

Finance officials say these discussions have been underway since 2018 and the Bahamas has been an active participant in the process.

The framework proposed by the steering group requires the consensus of the 139 countries of the inclusive framework on BEPS before going on to the G20 finance ministers for ratification later this year.

And while the Bahamas reasserts its sovereign right to determine the tax structure best suited for the country, finance officials maintain the government continues to remain proactive to shape a position that ensures the financial sector remains competitive and dynamic.