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Base erosion and profit shifting

Programme of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalisation of the Economy

 

 

Published: 31 May 2019

 

About

Members of the OECD/G20 Inclusive Framework on BEPS (IF) took a major step forward with the agreement on the Programme of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalisation of the Economy. This Programme of Work provides detailed instructions to the IF and its technical working groups to deliver a solution to the tax challenges brought by digitalisation. This work focuses on two pillars:

  1. The first pillar is about the allocation of taxing rights, and seeks to undertake a coherent and concurrent review of the profit allocation and nexus rules.
  2. The second pillar focuses on the remaining BEPS issues and seeks to develop rules that would provide jurisdictions with a right to "tax back" where other jurisdictions have not exercised their primary taxing rights or the payment is otherwise subject to low levels of effective taxation.

While exploring these two pillars, the Programme of Work also planned an economic analysis and impact assessment that will be carried out over the next months. This step forward is essential as it shows the willingness of the IF members to agree on a global and sustainable solution by the agreed timeline of 2020. 

Building on the previous consultations on BEPS, a set of regional outreach events on digitalisation will be carried out in partnership with regional organisations and development banks.

 

Press release

 

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