RIYADH, Saudi Arabia: The Digital Cooperation Organization (DCO), the global organization dedicated to enabling digital prosperity for all, has released a new whitepaper intended to encourage dialogue and debate around international taxation proposals for the digital economy.
There are currently two main proposals to address the issues of digital taxation, the OECD’s BEPS 2.0, and a second proposal from the UN Tax Committee. The DCO’s has now whitepaper reviews these proposals to address the issue of digital taxation, and proposes further dialogue on the issue.
DCO Secretary-General Deemah AlYahya commented: “The digital economy has created a fast-moving and changeable business environment, and there is a need for new international taxation rules that can secure transparency, fairness, and long-term sustainable economic growth for all. We believe that there is room for broader multilateral conversations, along with in-depth studies that can help formulate a global taxation solution that will be equitable to all nations. A coordinated global approach to taxing the digital economy could bring benefits to nations in terms of foreign direct investment, economic recovery and poverty reduction.”
Manel Bondi, Digital Taxation Director, at DCO, and the author of the whitepaper, added: “For the OECD International Framework (IF), the work done so far is a major and remarkable step towards reframing the international tax regime. However, certain IF members, notably low-and medium-income countries (LMICs), expressed deep concerns about what they consider as ‘inequities embedded in the deal’.
“Regarding the UN proposal, it is seen by a large number of IF members, developing countries, as a serious alternative to OECD, being more adapted to their capacities, and better serving their interests… and this position is strengthened by the support of the IMF and the World Bank[i] of the UN proposal from a developing country perspective. DCO’s major recommendation for both working groups is to open the debate to all stakeholders, for transparent discussions towards a global consensus,” she explained.
To further the dialogue around global digital taxation, the DCO is engaging with the international tax community, DCO member states and other stakeholders, beginning with a webinar to discuss the issues covered in the whitepaper and more.