International commerce is increasingly digital. But the global taxation system is still aimed at traditional “brick and mortar” needs. The action plan of the OECD’s package of measures to combat base erosion and profit shifting (BEPS) acknowledges the need for modernisation. This has been partly achieved after the BEPS Action Plan was released in October 2015.
Still, specific recommendations on digital taxation are limited and the OECD’s calls to achieve international consensus on the way forward have largely been disregarded.
As to what changes lie on the horizon and how your business will be able to cope with the consequences, our coverage of the topic of taxation of digital business activity can be read here.
