Statement, July 2021
Statement by the South Centre on the Two Pillar Solution to Address the Tax Challenges Arising From the Digitalisation of the Economy
The South Centre takes note of the statement by 130 members of the OECD/G20 Inclusive Framework (IF) on a two-pillar solution to address the tax challenges arising from the digitalisation of the economy. The agreement by the members is indeed historic and marks progress in the right direction. Unfortunately, the agreed upon solution is limited and disappointing as it falls short of the more ambitious and transformational reforms needed for a balanced agreement that fully responds to the concerns of developing countries, especially in the backdrop of the socioeconomic challenges posed by the COVID pandemic. Nine jurisdictions have not agreed with the statement, with the reasons still not public; however, it is a signal that cannot be ignored.
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This article was tagged: African Tax Administration Forum (ATAF), Base Erosion and Profit Shifting Project (BEPS), COVID-19, Digital Economy, Digital Service Taxes (DSTs), Digital Taxation, Digitalization of the Economy, Group of 20 (G-20), Group of Twenty-Four (G-24), Inclusive Framework, International Taxation, Multinational Enterprises (MNEs), Organisation for Economic Co-operation and Development (OECD), Pillar One, Tax, Tax Avoidance, Tax Law, Tax Policy, Tax Reform, Tax Sovereignty, Taxing Rights, Two-Pillar Approach