OECD Secretariat Provides Update on Progress on Taxing the Digital Economy

The OECD along with the 137 inclusive member countries are continuing to work on a two-pillar proposal to address the tax challenges of the digital economy, which calls for a revision of profit allocation and nexus rules under pillar 1 and global minimum taxation under pillar 2. The goal is to reach an agreement on the solution by the end of 2020.

Governments hope the solution will allow them to tax multinationals that raise revenues with little to no physical presence in their jurisdictions…