On 31 January 2020, the Organisation for Economic Cooperation and Development (OECD) published a statement on taxation of multinational (digital) companies, according to which an agreement should be in place by the end of 2020 (see also our contributions of 12 October 2019 and 9 November 2019).
The conference topics agreed to determine, on the basis of a uniform approach to the first pillar, where taxes should be paid ("nexus rules") and which share of profits should be taxed ("profit allocation rules"). The aim is to ensure that multinational companies that conduct sustainable and significant business in places where they may not be physically present can be taxed in such jurisdictions.
Further political decisions are to be taken in Berlin in July on how the proposal is to be worked out in detail.
The OECD Communication is available here.
