The existing international tax rules may no longer capture where value is created, and many countries are implementing a unilateral digital services tax rather than waiting for international consensus. The Unified Approach on Pillar One is currently the international solution at the table. However, further development is needed and the OECD is ambitiously aiming for the end of 2020. The current COVID-19 situation encourages people to be online more, which further increases the importance of Pillar One.
The following topics will be covered in the webinar:
- Brief overview of the unilateral digital service taxes
- Scope of Pillar One
- New nexus in the user/market jurisdiction
- New profit allocation rule and the interaction with the arm’s length principle
- Dispute resolution mechanisms
Please click here to watch the webinar.