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OECD Pillars and local initiatives

The OECD Pillars proposals on how to tax, e.g., digital economy by changing the allocation of taxing rights through review of the profit allocation and nexus rules, and on addressing remaining BEPS issues and minimum taxation are, subject to a political agreement, proceeding towards legislation in 2021. And they would then take actual effect only in years to come.

26 November 2020

Given the economic turmoil caused by the pandemic and the fact that number of countries see the digital economy to require faster tax policy movements than the one provided by the OECD’s Pillar 1 initiative, we also still witnessing a constantly evolving unilateral Digi Tax regime landscape. This means that number of countries are introducing new Digi Tax regimes unilaterally while the rest of the world is waiting for the harmonized OECD and EU approach.

To name a few of the latest developments, Spain has in October 2020 enacted digital services tax applying to the provision of certain digital services users located in Spain. The new law will be effective from the beginning of 2021. Recently tightened reporting requirements relating to Indian equalization levy on online transactions have also raised discussion amongst our clients. Information on all these unilateral measures, and beyond, can be found from our interactive tool, ATLAS.
 

Feel free also to contact our teams. They are happy to discuss the topics further with you!

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