OECD Proposes Solution to Global Digital Taxation & Digital Companies

The OECD has proposed a competing solution to one of 3 suggestions projected in order to combat the issue of taxing multinational enterprises and digital companies working remotely. Its suggestion seems to be a compromise between the 3 however would ensure that multinational companies will be taxed where they conduct a significant amount of business however do not have a physical presence.

Using the creation of new connection-regulations asserting where tax should be paid, and profit allocation stating what percentage of revenue should be taxed. The OECD has requested that the G20 jurisdictions provisionally agree to the terms by January 2020.