On October 8, 2021, 136 economies agreed to the new framework for international tax and its accompanying detailed implementation plan. The landmark agreement saw the participation from previous hold-outs such as Estonia, Hungary and Ireland. With the inclusion of these economies, the agreement is now supported by all Organisation for Economic Cooperation (OECD) and Group of Twenty (G20) countries. Four countries within the 140-member OECD/G20 Inclusive Framework (IF), namely Kenya, Nigeria, Pakistan and Sri Lanka, have not joined the agreement. In the joint statement that announced this landmark deal, the IF also clarified some key parameters pertaining to the implementation of these reforms.

In this analytical note, the authors seek to highlight the key changes in the October 8, 2021 IF Statement compared to the July 1, 2021 IF statement, which formed the basis of the previous AMRO Analytical Note published on September 28, 2021. It will also provide a brief overview of the significance of these changes, particularly to the ASEAN+3 economies.