South Centre Comments on Regulated Financial Services Exclusion, 20 May 2022
South Centre Comments on Regulated Financial Services Exclusion
The South Centre today provided its comments to the OECD Inclusive Framework’s Task Force on Digital Economy (TFDE) on the Amount A: Regulated Financial Services Exclusion. These rules are part of the overall OECD project on the taxation of the digitalized economy known as Pillar One. They determine the amount of a Multinational Enterprise’s (MNE) profits that will then be partially redistributed to market jurisdictions, which are expected to be largely developing countries.
The Regulated Financial Services Exclusion seeks to remove financial institutions such as banks, insurance companies and asset managers from the scope of the tax, known as Amount A. This may greatly reduce the amount of tax that can be collected by the developing countries from the OECD solution.
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This article was tagged: Amount A, Article 12B, Digital Economy, Digital Tax, Digital Taxation, Inclusive Framework, International Tax Cooperation, Multinational Enterprises (MNEs), Organisation for Economic Co-operation and Development (OECD), Pillar One, Regulated Financial Services Exclusion, Task Force on Digital Economy (TFDE), Tax, Tax Cooperation, Tax Law, Tax Policy, Tax Reform, Taxation, United Nations Committee of Experts on International Cooperation in Tax Matters (UNTC)