Tax challenges of the digital economy - new OECD proposals

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digital economyAccording to the BEPS Action Plan, draft on tax challenges of the digital economy is being discussed.
Recently the OECD has prepared proposals how to make international digital business pay corporate taxes in jurisdictions where the sales take place.

In the released draft paper some measures are proposed to improve taxation of internet multinational companies:

• new taxation criteria based on ‘significant digital presence’, and a new concept of ‘virtual’ rather than purely physical permanent establishment; • changes to model tax agreements that exempt business premises from permanent establishment status if they merely store, display or deliver goods, or collect information for the enterprise; • introduction of withholding taxes for digital transactions. Final report on this issue is expected in September 2014.
You can find more information on the official OECD website.