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Global: OECD Steps Up Efforts on Digital Taxation

1 MIN READJan 30, 2019 | 17:01 GMT

What Happened: The Organization for Economic Cooperation and Development (OECD) confirmed Jan. 29 that it is working on a global revision of tax rules for digital commerce, particularly in an effort to establish a minimum corporate tax rate.

Why It Matters: Although differences on digital taxation remain between the United States and the European Union, a coordinated approach to the issue could streamline and standardize tax policy on digital services to avoid common problems, such as double taxation or loopholes.

Background: The European Commission proposed a plan for a temporary tax on the revenues of roughly 120 large tech companies in March 2018, while the OECD is working on a global framework solution. The EU plan would require unanimous approval by all EU member states.

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