13/02/2019 the OECD published a consultation document seeking comments on key issues and possible solutions related to the tax challenges arising from the digitalisation of the economy.
This consultation is part of the ongoing work of the Inclusive Framework on BEPS and will inform the work of the Inclusive Framework towards a consensus-based long-term solution in 2020.
The deadline to provide comments to the OECD is 1 March 2019.
As in the recently-published OECD Policy Note on the same topic ( http://www.oecd.org/tax/beps/policy-note-beps-inclusive-framework-addressing-tax-challenges-digitalisation.pdf), the proposals in this consultation involve two pillars; one pillar that focusses on the allocation of taxing rights (i.e. revised profit allocation and nexus rules) and a second pillar that addresses remaining BEPS issues. As the OECD proposals will re-assess long-established taxation principles, chiefly the arm’s length principle, they are relevant to all businesses and companies.
Therefore the digital taxation file is potentially the most important one in the next two years. Insurance Europe is closely monitoring developments, plans to get involved in discussions at BIAC level and is – in principle – planning to respond to this consultation, provided that members agree and that they are able to contribute to the response within the short timeframe.