Close
Close

OECD delays digital tax agreement to October

RFP
Tax Hot Topics newsletter The Organisation for Economic Co-operation and Development (OECD) delayed its July target date for agreement on digital tax concerns to October.

The OECD “Inclusive Framework” of 140 jurisdictions is working towards a consensus solution to the tax challenges of digitalization. Discussions have focused on a two-pillar solution. Pillar 1 proposes a “unified approach” to revise taxing nexus and income allocation rules while Pillar 2 proposes a global anti-base-erosion approach with a global minimum tax. The discussions and economic impact will also address COVID-19-influenced losses and profits.

The countries are expected to meet remotely in July but would not be expected to reach agreement until a physical or remote meeting in October. Implementation details could be decided in 2021 under a “staged process,” possibly including some aspects of Pillar 1. In the meantime, the unilateral enactment of digital services taxes by individual nations is expected to continue.

Contacts:
David Sites
Partner
Washington National Tax Office
T +1 202 861 4104

David Zaiken
Managing Director
Washington National Tax Office
T +1 202 521 1543

Steven Wrappe
Managing Director
Washington National Tax Office
T +1 202 521 1542

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.