Tax Challenges of Digitization

The challenge of how to tax the digital economy was identified in the OECD's BEPS initiative as Action 1: Addressing the Tax Challenges of the Digital Economy. The OECD/G20 Inclusive Framework on BEPS (IF), comprising 140 countries, are trying to build a consensus around taxation of the digital economy. At the same time, some countries are taking unilateral actions, such as imposing digital services taxes. As the digitization tax debate continues, multinational companies will need to stay abreast of both short- and long-term developments to navigate and prepare successfully for the resulting changes to the global tax landscape.