ITI Assesses Progress on Multilateral Efforts to Address Tax Challenges of the Digitalizing Economy
WASHINGTON – Today, global tech trade association ITI assessed the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework’s ongoing efforts to address the tax challenges arising from the digitalizing economy. In response to the Progress Report on Amount A of Pillar One, ITI underscored its support for further development of the Inclusive Framework’s Two-Pillar Approach, and encouraged negotiators to advance a streamlined administrative process, innovative tax certainty, and the permanent withdrawal of digital services taxes for all companies.
“The Inclusive Framework’s extended timeline for development and implementation reflects the importance of getting this right, both in terms of achieving the project’s objectives and ensuring that the final framework is administrable, stable, and durable,” said Megan Funkhouser, ITI’s Senior Director of Policy, Tax, and Trade. “While ITI is encouraged to see revisions to improve administrability, the current proposal still requires meaningful work to address taxpayer certainty and eliminate double taxation – both of which are key objectives of the project. The next few months are critical for further strengthening the building blocks at the center of stabilizing the international tax environment, such as tax certainty, tax administration, the treatment of withholding taxes, and the removal of digital services taxes. We look forward to continuing to participate in stakeholder engagement opportunities to foster a global tax system that promotes investment and innovation.”
Read the full submission here.