BRUSSELS – Today, ITI, the global voice for the tech sector, welcomed the Organisation of Economic Co-operation and Development’s (OECD) ongoing work to address digital taxation, following the release of its Policy Note, Addressing the Tax Challenges of Digitalisation of the Economy.
“As more countries contemplate harmful, unilateral digital tax policies, the need for a multilateral solution grows,” said Jennifer McCloskey, ITI Vice President of Policy. “Today, the OECD took an important step by outlining a consensus approach. The OECD effort is essential to maintaining and strengthening the international tax system. ITI supports these efforts and looks forward to engaging in the upcoming public consultation.”
In its Policy Note, the OECD outlines two focus areas intended to organize the ongoing multilateral negotiations scheduled to wrap up in 2020. The first will examine proposals to address tax nexus within jurisdictions while the second will examine proposals, such as a minimum tax, which are an extension of policy conversations previously raised during the Base Erosion and Profit Shifting (BEPS) project. The OECD released today’s Policy Note ahead of a public consultation on March 13-14, with a final report expected in 2020.