The impact of the 'Two-Pillar Solution' on developing economies was discussed at a two-day event on international taxation hosted by India as part of its G20 Presidency.
The talks on international taxation, held at the National Academy of Direct Taxes in Nagpur, were in collaboration with Geneva-based think-tank South Centre and concluded on June 2, the finance ministry said in a statement.
The National Academy of Direct Taxes is the top training institute for Indian Revenue Service officers.
"This event is an initiative of the Indian Presidency to bolster capacity building for Indian tax officials of both senior and middle management levels in the area of International Taxation, with a global south perspective," the finance ministry said.
In October 2021, after years of negotiations, members of the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on base erosion and profit shifting agreed on a 'Two-Pillar Solution' to address tax challenges arising from digitalisation of the global economy.
The two pillars comprise of reallocating some taxation rights over multinational corporations from their home country to areas where they are active and earn profits. The second pillar looks to introduce a global minimum corporate tax rate of 15 percent to curb competition over corporate income tax.
The two-day event in Nagpur was attended by international tax experts from organisations such as the United Nations Tax Committee, Tax Justice Network Africa, West African Tax Administration Forum, and Independent Commission for Reform of International Corporate Taxation, among others.
As part of the talks, two panel discussions were conducted on the 'Two-Pillar Solution' and its alternatives along with a workshop on tax treaty negotiations.