Many countries have introduced digital services taxes that apply to only very large multinational groups, while other countries’ digital taxes apply to a much wider range of businesses. India’s equalisation levy has an extremely low revenue threshold and for the time being is likely to affect more multinational businesses than any other digital services tax.
The U.S. Trade Representative’s office is launching investigations into a number of countries’ digital services taxes, which may be “unfair or discriminatory and negatively affect U.S. Commerce.”
Mexico has joined the growing list of countries imposing a digital tax. In this case, Mexico has extended its VAT law to cover certain digital services provided by foreign suppliers.
The OECD recently issued information on its Pillar Two, which is part of a larger plan to prevent multinationals from shifting profits to reduce or eliminate taxes. We provide a summary of the new OECD document and explain why it’s key to understanding the changing world of corporate taxation.
This month, the OECD proposed rules to ensure multinational companies pay tax in countries where they have significant consumer activities and generate profits. The rules could effect a radical shift in how businesses are taxed.
Leaders from the G7 countries concluded their annual three-day summit yesterday. A storyline involving France, the U.S., digital taxation and wine tariffs illuminates some of the most important economic issues of our time.