Tax challenges of digitalisation: OECD paper released - 20 February 2019
The OECD recently released a consultation document "Addressing the Tax Challenges of the Digitalisation of the Economy", with a view to reaching a new consensus-based long-term solution in 2020.
The consultation document considers a number of reforms to the existing international tax framework. Firstly, the OECD will consider revised profit allocation and nexus rules which could result in additional taxing rights to market countries. In addition, new global anti-base erosion rules are being considered, such as an income inclusion mechanism and in some cases, a denial of deductions. Public consultation will be undertaken in March 2019.