Tax Challenges Arising from Digitalisation – Economic Impact Assessment
Inclusive Framework on BEPS
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The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project laid the foundations of the project to address the tax challenges arising from the digitalisation of the economy with the release of the BEPS Action 1 Report. Since then, the OECD/G20 Inclusive Framework on BEPS has been working on the issue, delivering an interim report in March 2018, at the request of the G20.
In May 2019, the Inclusive Framework adopted a Programme of Work, which was endorsed by the G20 Finance Ministers and G20 Leaders in June 2019. The Programme of Work outlined proposals in two pillars that could form the basis for a multilateral consensus-based solution. It also provided that the OECD Secretariat would undertake an economic impact assessment of the proposals to ensure that all members of the Inclusive Framework could be kept fully informed of the economic and tax revenue impact of key decisions relating to the proposals.
This report presents an ex ante analysis of the economic and tax revenue implications of the Pillar One and Pillar Two proposals under discussion by the Inclusive Framework as part of its work to address the tax challenges arising from the digitalisation of the economy.
Also available in: French
Tax revenue effects of Pillar Two
This chapter presents the analytical framework and data sources used by the OECD Secretariat to assess the effect on corporate tax revenues of Pillar Two. It also contains high-level estimates of the impact of Pillar Two at the global level and at the level of broad groups of jurisdictions. Pillar Two addresses remaining BEPS challenges and is designed to ensure that large internationally operating businesses pay a minimum level of tax regardless of where they are headquartered or the jurisdictions they operate in (OECD, 2020[1]).
Also available in: French
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