OECD releases comments on international tax rules for digital economy

The OECD on October 25 released public comments from 52 individuals and groups on the design of new international tax rules for digital firms. The comments, released in two documents, Part I  and Part II, aim to help an OECD task force prepare an interim report on the issue, to be presented to G20 finance ministers in April 2018.

It is widely acknowledged that the current international tax rules inadequately tax the profits of digital firms because they are out of date. Thus, a move is underway at the OECD to reach worldwide agreement on a new set of rules.

The Task Force on the Digital Economy (TFDE), a subsidiary body of the OECD Committee on Fiscal Affairs which includes non-OECD and non-G20 country participants, requested the public feedback September 22. Comments were requested on the impact of digitalisation on business models and value creation, challenges and opportunities for tax systems, the implementation of the measures outlined in the OECD/G20 base erosion profit shifting (BEPS) package, and potential options to address the direct tax challenges of digitalisation.

A public consultation on these issues will be held on November 1 at the University of California, Berkeley. The meeting will be broadcast live on the internet.

The following individuals and groups submitted comments:

ABI: AFME/UK Finance; Airbnb; BDI; BEPS Monitoring Group (BMG); BIAC; BlaBlaCar; Breslin Consulting; CBI; Chartered Institute of Taxation (CIOT); Confcommercio Imprese per l’Italia; Confédératio fiscale européenne (CFE); DET3; Digital Economy group; Dr. Niv Tadmore; Ernst & Young; German Association of Tax Advisers; Grant Thornton International; ICAEW; ICC; IHG; Informa; Informa; Institute for Austrian and International Tax L (WU); International Alliance for Principled Taxation; Irish Tax Institute; ITI; Japan Association of New Economy (JANE); Jeffery M. Kadet; KPMG; Loyens Loeff; Ludovic Piccone & Partners; Maisto e Associati; MEDEF; National Foreign Trade Council; NERA; Orontes Mariani; Oxford University Centre for Business Taxation; Padam Khincha & Shivanand Porus Kaka; PwC; Silicon Valley Tax Directors Group; SJD Candidates–Levin College of Law; Sony. Spotify; Tax Executives Institute Inc; Tax Justice Network Israel; Telefonica; United States Council for International Business (USCIB); Universidad de Castilla-La Mancha; University of Lausanne, IBFD, KU Leuven International Observatory on the Taxation of the Digital Economy; University of Mannhem.

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