A global economic body has proposed overhauling the way multinationals, particularly tech giants, are taxed to ensure they pay their fair share in countries where they do significant business.
The plan from the Paris-based Organisation for Economic Co-operation and Development (OECD), which advises 134 countries, comes after France and the United States agreed in August to find a way to better tax digital businesses by mid-2020.
The proposal, which applies to multinationals in all sectors, would re-allocate some tax revenue to countries where big companies such as Google, Facebook, Amazon and Apple “have significant consumer-facing activities and generate their profits”, the OECD said. Currently, multinationals tend to pay most of their tax in the country where they are based.
That is particularly true for business carried out online, such as ad revenue from online searches or social media.
OECD #tax proposal: Companies will pay their fair share wherever they have activities + wherever they make profits. Countries currently unable to tax #digital giants will be able to do so.
Find out more https://t.co/Z4WoGEAZUD pic.twitter.com/soBPEHMUrf
— OECD Better policies for better lives (@OECD) October 9, 2019
– PA Media, with additional reporting by Eva Short.
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Source:: Silicon Republic