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.
- EU: Juncker Shakes Things Up With a Proposal for a Different Voting System (Sept. 12, 2018)
- Digital Tax Proposals Produce New Discord in the EU (Feb. 14, 2018)
- EU: New Tech Taxes Will Drive Divisive Decisions (March 16, 2018)