Brussels, BELGIUM — The Organisation for Economic Cooperation and Development (OECD) today published its proposal for a key part of its global tax reform pertaining to the digitalisation of the economy. A public consultation will run until November 12. The OECD aims to achieve overall consensus by the end of 2020.
CCIA welcomes the ambition and progress made by the OECD to achieve consensus on a multilateral approach to update our global taxation framework. We agree with the OECD’s focus on the re-allocation of taxing rights and on taxing profits. To realise the OECD’s ambition of “ensuring [that] all MNEs pay their fair share” the proposal’s scope should not become too limited. The digitisation of business models will go well beyond consumer-facing businesses.
The OECD/G20 efforts toward global tax reform, which now includes 134 countries, come as a few countries, notably France, have enacted national digital taxes. The OECD today cautioned against that such “uncoordinated unilateral tax measures, including measures that tax gross revenues” [which] “would undermine the relevance and sustainability of the international tax framework, and would damage global investment and growth.”
The following can be attributed to CCIA Europe’s Vice President and Head of Office, Christian Borggreen:
“We welcome the impressive progress to achieve consensus on global tax reform by 2020.
This historic reform must be ambitious and recognize that all businesses are digitising.
We agree that countries should not seek any unilateral taxes that would risk derailing global tax reform and ‘damage global investment and growth’.”
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