ICC Document & publication

ICC comments on OECD public consultation document: Addressing the tax challenges of the digitalisation of the economy

ICC welcomed the opportunity to provide input on the Organisation for Economic Co-operation and Development (OECD)’s public consultation document on Addressing the tax challenges of the digitalisation of the economy. ICC fully supports a harmonised approach to ensure that international tax rules remain relevant and applicable in an increasingly digitalised global economy.

In an era of unprecedented digital evolution, technological advances and digital connectivity serve to cultivate innovation in business models, business networking and knowledge transfer while also facilitating access to international markets for all businesses. The digitalisation of the economy creates new opportunities for global growth and prosperity as well as enabling improved education, skills, health care and social services for all.

As digitalisation continues to be an important driver for global economic growth, policies related to taxation of the digitalised economy should seek to promote, and not hinder, economic growth and cross-border trade and investment.  Any change of international rules or principles should be done through a comprehensive, coherent and co-ordinated approach between jurisdictions.

In line with established positions, ICC maintains that the OECD’s work related to the taxation of the digitalised economy should build on internationally-established tax principles to help define the contours of a suitable tax framework for the digitalised economy that encourages business activities, job creation and economic growth.

ICC provided comments on the Pillar 1 and Pillar 2 proposals outlined in the OECD document.

As the OECD seeks to garner support and agreement from 128 countries for changes to the international tax framework in the context of addressing the tax challenges arising from digitalisation, ICC stressed the importance of continuing to improve dispute avoidance and dispute resolution procedures to reduce double taxation disputes.