Finance Minister Pierre Gramegna attended the OECD ministerial meeting in Paris this week, where he joined more than 70 countries for the signing of the multilateral BEPS instrument amending hundreds of bilateral tax treaties to bring them into line with the provisions of the BEPS tax treaty action plan.
“As one of the first signatories to this multilateral instrument, Luxembourg reaffirms its commitment to fiscal transparency and the prompt implementation of BEPS measures decided by the G20 and the OECD,” said Gramegna, adding, “Through this instrument, Luxembourg is updating its conventional network, in line with the new BEPS rules. The instrument makes it possible to close gaps that may exist in existing tax treaties of the signatory parties and thus constitutes an important step in the construction of a “level playing field” at the global level”.
The Grand Duchy will also participate in the optional arbitration component of the new instrument.
The theme of the ministerial meeting was “making globalisation the tool of a better life for all” turning participants’ minds towards the question of how to make globalisation more equal and inclusive.
Pierre Gramegna chaired a ministerial working group on business development, including SMEs, in an open and digital economy. Participants discussed how to get the most out of globalisation, digital technology and free trade agreements.
The ministerial meeting was also an opportunity to present the OECD Economic Outlook for 2017 and 2018. For Luxembourg, the OECD confirms the trends already observed in other studies (growth Of GDP to over 4% over the coming years, falling unemployment and a very strong external position). In particular, the OECD points out that the evolution of international taxation and the gradual construction of a level playing field is likely to benefit the Luxembourg economy, given its other competitive advantages.
On the sidelines of these meetings, Minister Gramegna also had bilateral interviews with Alfredo Thorne, Minister of Economy and Finance of Peru and Ariel Sigal, Deputy Minister of the Treasury of Argentina. They referred to the candidatures of both countries for accession to the OECD, the reforms undertaken by Luxembourg in favour of fiscal transparency, and the proposed conclusion of double taxation treaties between the two countries. Pierre Gramegna also met his Irish counterpart Michael Noonan, to discuss the evolutions in international taxation.
Finally, the Minister met with the Deputy Secretary-General of the OECD, Rintaro Tamaki, with whom he had an exchange of views on the international economic and financial situation.