As I report to you, the COVID-19 pandemic continues its course, resulting in global and sustained economic fallouts. Since the start of the COVID-19 pandemic, the OECD has monitored closely the tax and fiscal policy responses of countries and jurisdictions. Tax policy should prioritise supporting health systems and recovery above all and then be adapted in view of social and economic transformations that include but are not limited to COVID-19. Beyond domestic measures, as governments are adopting recovery plans to restore growth, the issue of international taxation and cooperation remains a priority. One pressing issue—which has been a priority of the international community for several years—is to reform the international tax system to address the tax challenges arising from the digitalisation of the economy, restore stability to the international tax framework and avoid the risk of further uncoordinated, unilateral tax measures which could trigger trade sanctions. The COVID-19 crisis has exacerbated these tax challenges even further by accelerating the digitalisation of the economy, increasing pressures on public finances and decreasing public tolerance for profitable MNEs not paying their fair share of taxes. In July 2020, your Finance Ministers mandated the G20/OECD Inclusive Framework on BEPS (hereafter G20/OECD Inclusive Framework) to produce reports on the Blueprints of Pillar One and Pillar Two by the October G20 Finance Ministers meeting with a view to reaching consensus by year end. Pillar One is focused on nexus and profit allocation whereas Pillar Two is focused on a global minimum tax intended to address remaining base erosion and profit shifting (BEPS) issues. Despite the unprecedented times, the G20/OECD Inclusive Framework, which consists of 137 member jurisdictions, has worked tirelessly to deliver the reports on the blueprints of the two-pillar solution to these direct tax challenges. Since February 2020, the Steering Group and the Working Parties of the G20/OECD Inclusive Framework have carried out almost 70 days of mostly virtual meetings to advance the technical work. On 9 October 2020, the G20/OECD Inclusive Framework finalised a package consisting of a Cover Statement1 and the Reports on the Pillar One and Pillar Two Blueprints for public release. This package reflects convergent views on a number of key policy features, principles and parameters of both Pillars, identifies remaining political and technical issues where differences of views remain to be bridged, and next steps. The 137 members of the G20/OECD Inclusive Framework recognised the Report on the Blueprint on Pillar One2 as a “solid foundation for future agreement that would adhere to the concept of net taxation of income, avoid double taxation and be as simple and administrable as possible”, and that the Report on the Blueprint on Pillar Two3 is “a solid basis for a systemic solution that would address remaining base erosion and profit shifting (BEPS) challenges”. On 14 October 2020, the G20 Finance Ministers endorsed the Reports on the Blueprints for Pillar 1 and Pillar 2 approved for public release by the Inclusive Framework. They further stated4 that: “Building on this solid basis, we remain committed to further progress on both pillars and urge the G20/OECD Inclusive Framework on BEPS to address the remaining issues with a view to reaching a global and consensus-based solution by mid-2021.” In addition, as decided in the May 2019 Programme of Work5 , the OECD Secretariat released its report, Tax Challenges Arising from Digitalisation – Economic Impact Assessment 6 , and analyses the economic and tax revenue implications of both Pillars, as set out in the blueprints. Pillar One and Pillar Two could increase global corporate income tax (CIT) revenues by about USD 60-100 billion per year or up to around 4% of global CIT revenues taking into account the combined effect of these reforms and of the US GILTI regime. Thus, while at this point the conditions for a political agreement have not yet been achieved, the Inclusive Framework now has a sound and solid basis for a future agreement to which it remains committed. Given, how far the architecture of each Pillar has advanced, political agreement could and should be reached soon. Meanwhile, the G20/OECD Inclusive Framework decided on 9 October 2020 to use the reports on the blueprints as a basis for seeking stakeholder input. These inputs will inform the ongoing work of the G20/OECD Inclusive Framework, which has also agreed to continue working to resolve the remaining issues quickly with a view to bringing the process to a successful conclusion by mid-2021. Reaching a solution to the tax challenges arising from digitalisation will only be achieved with your strong leadership and unequivocal political support and involvement. The work on tackling other tax challenges arising from the digitalisation of the economy is also progressing. · As new technologies derived from digitalisation have emerged, they raise novel tax challenges that must be addressed as well. In this respect, the G20/OECD Inclusive Framework adopted in October 2020 the report, Taxing Virtual Currencies: An Overview of Tax Treatments and Emerging Tax Policy Issues. With coverage of over 50 jurisdictions, including all G20 and OECD members, this report is the first comprehensive analysis of the existing approaches and key policy gaps across the main categories of taxes for such a large group of countries. · Progress is being made in updating the Common Reporting Standard for the automatic exchange of information to extend its coverage to crypto assets. The update of the standard should be completed in 2021. · The implementation of the OECD’s standards for the effective collection of VAT on online sales of goods, services and digital products (included in the 2015 BEPS Action 1 report) have continued to influence VAT reform in a growing number of countries worldwide. Work on guidance for the VAT treatment of the sharing and gig economy, including on the role of sharing and gig economy platforms in facilitating VAT compliance, is on track for delivery by the end of 2020. Almost 65 jurisdictions have implemented these standards while over 40 additional jurisdictions are implementing these standards or are considering doing so. Among those, three jurisdictions have promoted a VAT/digital solution while abandoning their plans for a digital services tax (DSTs) based on turnover. The implementation of these standards is yielding impressive results. For example, the European Union reported EUR 14.8 billion of VAT revenues collected from these measures in the first four years of their operation. · Once implemented, the model reporting rules7 for digital platforms facilitating transactions in the sharing and gig economy, approved on 30 June 2020, will constitute an efficient tool to ensure digital platforms report to tax authorities the identity of sellers active on the platform, as well as details on the transactions they have concluded.