Global Tax Talks in Cape Town Could Shape South Africa’s Tax Future
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Earlier this month, South Africa hosted a major international tax event — the 17th Plenary of the OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting) — in Cape Town. The meeting brought together over 450 tax officials from 135 countries and 11 international organisations to discuss how countries can work together to make global tax rules fairer and more effective.
🧾 What Was Discussed?
Two-Pillar Tax Reform
Pillar One: This proposes giving more taxing rights to the countries where companies do business, especially where users are located — even if the company has no physical presence there.
Pillar Two: This aims to set a 15% global minimum tax for large multinational companies, to stop profits from being shifted to low-tax countries.
Review of Current BEPS Measures
Countries are tracking the success of tax rules that prevent big companies from avoiding tax by shifting profits across borders.
New Areas for Tax Policy
Delegates discussed how tax policies can support economic growth, reduce inequality, and handle global mobility (e.g. people working in different countries remotely).
Developing countries, like South Africa, highlighted the importance of capacity building and raising more money locally through domestic resource mobilisation.
How This Could Affect Tax Laws in South Africa
Stronger Rules for Multinationals: South Africa may adopt new tax rules that ensure large corporations pay more tax where their customers are — not just where they set up head offices.
Minimum Global Tax: The introduction of the 15% minimum tax could affect South African-headquartered groups operating in multiple countries, as well as foreign multinationals doing business locally.
Support for Developing Countries: South Africa and its neighbours could benefit from international support and training to help enforce complex tax laws and modernise revenue systems.
Digital Economy Taxation: New rules may help SARS better tax companies operating in digital spaces (like online platforms) even if they’re not physically based in the country.
🔮 What’s Next?
The meeting showed that there’s strong global support for fair and modern tax systems. For South African accountants, tax advisors, and business owners, it’s a sign that change is coming — and staying informed will be key.
Read more about the Global Tax Talks on the OECD website here.
