OECD: Compendium of comments on “Blueprints” concerning tax challenges from digitalisation of the economy
OECD: Compendium of comments on “Blueprints”
The Organisation for Economic Cooperation and Development (OECD) released comments received on reports described as “Blueprints” concerning solutions to the tax challenges arising from digitalisation of the economy.
- The OECD report of the Pillar One Blueprint reflects a focus on new nexus and profit allocation rules so that, in an increasingly digital age, the allocation of taxing rights with respect to business profits is no longer exclusively circumscribed by reference to physical presence.
- The OECD report of the Pillar Two Blueprint reflects an approach that is focused on the remaining base erosion and profit shifting (BEPS) challenges and proposes a systematic solution designed so that all internationally operating businesses pay a minimum level of tax. Pillar Two leaves jurisdictions free to determine their own tax system, including whether they have a corporate income tax and where they set their tax rates, but also considers the right of other jurisdictions to apply the rules contained in this report where income is taxed at an effective rate below a minimum rate.
KPMG tax professionals on 14 December 2020 submitted comments with respect to the OECD’s request. Read TaxNewsFlash
According to the OECD release, all comments received in response to the Pillar One and Pillar Two Blueprints are in a large “zip file” [PDF 90 MB]. The OECD also announced that a “virtual” public consultation meeting will be held on 14-15 January 2021.
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