OECD: Tax challenges from digitalisation (BEPS) | KPMG | GLOBAL
Share with your friends

OECD: Interim report, tax challenges from digitalisation (BEPS)

OECD: Tax challenges from digitalisation (BEPS)

The Organisation for Economic Cooperation and Development (OECD) today announced the release of an interim report that addresses the tax challenges arising from the digital economy.


Related content

The interim report builds on the base erosion and profit shifting (BEPS) report under Action 1 and:

  • Includes an in-depth analysis of the changes to business models and value creation arising from digitalisation
  • Identifies characteristics that are frequently observed in certain highly digitalised business models
  • Identifies the positions of different countries and their approach to possible solutions (ranging from “no action” to changes need to apply to the economy more broadly)

According to today’s OECD release, the interim report underscores that many countries believe challenges to the international tax system remain, and thus establishes the groundwork to move forward at the OECD towards a long-term multilateral solution in the next phase of work. While agreeing to work towards a long-term solution by 2020, some countries believe that there is a strong imperative to act quickly and are in favour of the introduction of interim measures. Other countries, however, are opposed to interim measures and consider that these would give rise to risks and adverse consequences. 

The interim report also looks at how digitalisation is affecting other areas of the tax system, including the opportunities that new technologies offer for enhancing taxpayer services and improving compliance, as well as the tax risks, including those relating to the block chain technology that underlies crypto-currencies.


Read a March 2018 report prepared by the KPMG member firm in China

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal