Tax Challenges of Digitization

Insights from KPMG about the potential impact of proposed reforms on the taxation of the digital economy

Brett Weaver

Brett Weaver

IMPACT Tax Lead, KPMG US

+1 206-913-6697
View more

 

 

 

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.


 

Oct. 21 TaxWatch Webcast

Impact of latest IF statement

Impact of latest IF statement

OECD/G20 IF Oct. 8 Statement

KPMG observations

KPMG observations

Digitalized Economy Tax Developments

KPMG TaxNewsFlash alerts

KPMG TaxNewsFlash alerts

Digitalized Economy Tax Developments

Summary by country

Summary by country

Pillar One: Profits Allocations and Nexus (July 2021)
One-page summary of Pillar One, which aligns taxing rights with local market engagement. If multinational consensus on this is not achieved, unilateral digital taxation measures may continue to proliferate.
Pillar Two: Global Minimum Taxation (July 2021)
One-page summary of Pillar Two, which applies where, even after the effect of Pillar One (if any), where multinationals are regarded as undertaxed by reference to an agreed minimum level of taxation.
BEPS 2.0 – Assessing the Impact on Your Organization (KPMG BEPS 2.0 Model)
International Tax professionals from across the global organization of KPMG firms can help clients understand, communicate, and evaluate appropriate actions in light of the BEPS 2.0 initiative. Using the KPMG BEPS 2.0 Model, we can assist in analyzing how the proposals may affect your organization and give you the insights you need for effective tax planning.

Related content