OECD Schedules BEPS Webcast For Early May

30/04/2020

The OECD has scheduled a new Tax Talks webcast to update stakeholders on its work on the reform of international tax rules for the digitalized economy.

The webcast will be held on May 4, 2020, at 14:00 Central European Time.

Earlier, in March 2020, the OECD said that the COVID-19 pandemic would not delay its work towards delivering proposed solutions to reform the way the digitalized economy is taxed.

The OECD said that although it has made changes to working arrangements, it still intends to deliver its two-pronged plan by the end of this year.

The digital tax work involves two workstreams:

As part of "Pillar One", states will negotiate new rules on where tax should be paid ("nexus" rules) and on what portion of profits that should be taxed ("profit allocation" rules). This work seeks to ensure that multinational enterprises conducting sustained and significant business in places where they may not have a physical presence can be taxed in such jurisdictions.

Pillar Two (also referred to as the "Global Anti-Base Erosion" or "GloBE" proposal) calls for the development of a coordinated set of rules, including on a minimum effective tax burden for multinationals, to address ongoing risks from structures that allow MNEs to shift profit to jurisdictions where they are subject to no or very low taxation.

The OECD said in March 2020: "All participants continue working towards reaching a political decision on the key components of a multilateral consensus-based solution at the G20/OECD Inclusive Framework on BEPS plenary meeting scheduled for July 1-2, 2020, in Berlin, Germany."

The OECD webcast will also provide an update to stakeholders on how it is seeking to support developing countries amid the COVID-19 pandemic.

Source: Pride Partners International