Monaco Joins International Tax Cooperation Talks at OECD/G20 Plenary in Paris

Key Points:

• OECD/G20 Plenary Attendance: The Principality of Monaco participated in the 18th plenary meeting of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) held in Paris from October 28 to 30, 2026.
• Global Representation: The high-level summit brought together more than 420 delegates representing 125 jurisdictions alongside officials from 12 international organizations.
• Tenth Anniversary Milestone: The meeting marked the tenth anniversary of the Inclusive Framework, providing participating nations with a platform to evaluate decade-long progress against profit shifting and establish future priorities.
• Domestic Tax Reform: Demonstrating ongoing alignment with global standards, Monaco submitted a draft law in July 2026 proposing a domestic minimum top-up tax aligned with the OECD’s GloBE rules.
• Commitment to Transparency: Monaco has maintained active involvement in the BEPS initiative for nearly ten years, reinforcing its long-term strategy of fiscal transparency and international cooperation.

Monaco (Monaco Weekly Newspaper) November 3, 2026 – The Principality of Monaco reinforced its commitment to international fiscal transparency by participating in the 18th plenary meeting of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) in Paris. As reported by diplomatic and financial correspondents covering the summit, Monaco’s official delegation joined more than 420 delegates from 125 jurisdictions and 12 international organisations during the three-day conference held from October 28 to 30, 2026. The high-profile gathering marked the tenth anniversary of the OECD initiative, which was established in 2016 to prevent multinational corporations from artificially shifting profits to low-tax jurisdictions. Highlighting Monaco’s proactive integration of global tax standards, the delegation’s presence follows the principality’s submission in July 2026 of a draft law introducing a domestic minimum top-up tax in line with the OECD’s Pillar Two GloBE rules.

What are the primary objectives of the OECD/G20 Inclusive Framework on BEPS?

As reported by financial policy reporters in Paris, the OECD/G20 Inclusive Framework on BEPS operates as a global coalition designed to overhaul international corporate taxation and eliminate tax avoidance loopholes.

Established in 2016, the initiative targets base erosion and profit shifting (BEPS), a set of tax planning strategies utilized by multinational corporations to exploit gaps and mismatches in tax rules to artificially shift profits to low- or no-tax locations.

The comprehensive OECD programme encompasses 15 specific action measures intended to:

• Improve Tax Cooperation: Foster direct information sharing and regulatory alignment among sovereign tax authorities worldwide.
• Tackle Harmful Practices: Identify and dismantle preferential tax regimes that distort international trade and investment.
• Enforce Global Standards: Ensure consistent implementation of minimum anti-abuse standards across all participating member jurisdictions.

Marking its tenth anniversary, the 18th plenary meeting provided member states with an official forum to review accumulated progress, assess ongoing compliance challenges, and debate future enforcement priorities for digital and cross-border corporate taxation.

How is Monaco aligning its national tax framework with the OECD standards?

As reported by economic affairs correspondents covering the principality, Monaco has actively participated in the Inclusive Framework for nearly a decade, steadily adapting its domestic fiscal legislation to meet evolving international transparency benchmarks.

The latest milestone in this harmonization process occurred in July 2026, when the Monegasque government formally submitted a draft law proposing the establishment of a domestic minimum top-up tax.

This legislative proposal directly mirrors the OECD’s Pillar Two Global Anti-Base Erosion (GloBE) rules, which aim to ensure that large multinational enterprises are subject to an effective minimum tax rate of 15 per cent regardless of where they operate.

By advancing this domestic tax legislation, Monegasque authorities seek to balance the principality’s long-standing economic attractiveness with international compliance obligations, ensuring that corporate profits generated within its territory contribute fairly while preventing multinational corporations from circumventing global minimum taxation frameworks.

Background of Monaco’s Fiscal Evolution and International Tax Cooperation

The Principality of Monaco has historically maintained a unique sovereign tax structure characterised by the absence of personal income tax for residents (with specific exceptions for French nationals under bilateral treaties) and a specialized corporate taxation system. For decades, Monaco operated outside major multilateral tax agreements, focusing instead on independent bilateral arrangements, particularly with France. However, under pressure from the European Union, the OECD, and global financial bodies, the principality began a systematic modernization of its legal and regulatory frameworks during the 2000s and 2010s to enhance transparency and combat financial crime.

Monaco joined the Global Forum on Transparency and Exchange of Information for Tax Purposes, subsequently signing numerous Tax Information Exchange Agreements (TIEAs) and adopting the OECD’s Common Reporting Standard (CRS) for automatic financial account data sharing. Its formal integration into the OECD/G20 Inclusive Framework on BEPS represented a logical extension of this policy, committing the microstate to adhere to evolving international standards against profit shifting. The introduction of the GloBE-aligned domestic minimum top-up tax in 2026 marks the most significant structural evolution in modern Monegasque tax policy, signaling complete adaptation to the post-BEPS global consensus.

Multinational Corporations, Monegasque Businesses, and International Compliance

The ongoing integration of OECD tax cooperation standards and the proposed domestic minimum top-up tax are predicted to reshape corporate structuring, compliance operations, and investment strategies within Monaco through late 2026 and into 2027.

For multinational enterprises operating within or channeling investments through the principality, the implementation of the GloBE-aligned minimum tax is predicted to eliminate traditional tax arbitrage advantages associated with low-effective-tax structures. Corporate legal departments and financial advisors are expected to conduct comprehensive audits of holding company arrangements in Monaco to ensure full compliance with the new top-up tax reporting requirements, shifting the primary focus of corporate structuring away from tax minimization toward operational efficiency and substance.

For the Monegasque government and domestic financial sector, adherence to OECD transparency initiatives is predicted to solidify the principality’s reputation as a cooperative, white-list financial jurisdiction. By participating actively in Paris-led talks and enacting compliant domestic legislation, Monaco aims to insulate its banking and wealth management industries from international blacklisting risks, thereby reassuring institutional investors and foreign partners of its long-term financial stability and regulatory integrity.