OECD works on minimum corporate tax plan for digital giants
The emergence of digital giants such as Google and Facebook has pushed international tax rules to the limit
Paris — The Organisation for Economic Cooperation and Development (OECD) is working on plans for a minimum corporate tax rate as part of a global revision of tax rules for the digital era, it said on Tuesday. The emergence of digital giants such as Google and Facebook has pushed international tax rules to the limit because they can book profits in countries with the lowest taxes no matter where the customer is. About 127 countries and territories agreed last week that a planned revision of global tax rules by 2020 would tackle some of the most vexed issues, such as how to divide up the right to tax digital firms’ cross-border income between countries, the OECD said. Under a proposal from France and Germany, they also agreed to look at ways to give countries more leeway to tax revenue booked in other countries with no or low tax. “We are working ... on the concept of a minimum tax, we are exploring aspects and we will certainly take into account and may be informed by the experience ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.