WASHINGTON – ITI, the global voice of the tech sector, today issued comments underscoring the importance of a multilateral approach when considering digital taxation. In its response to the Organisation for Economic Co-operation and Development (OECD) Addressing the Tax Challenges of the Digitalisation of the Economy workstream, the international tech trade group recommended the organization acknowledge the digitalization of all businesses; align with widely-held international tax norms; minimize administrative burdens; and reflect a comprehensive, global consensus.
“Our broad objective is to ensure a functioning and dependable international tax system that promotes investment and innovation, while providing certainty and predictability for businesses,” ITI wrote in its comments. “ITI strongly supports the OECD as the best forum to achieve a multilateral agreement on any significant reforms to long-standing international tax rules. At the outset, we recognize the complex nature of this undertaking and appreciate the OECD’s continued leadership on this issue, which occurs against the backdrop of unilateral actions being contemplated by multiple countries. Instead of countries moving ahead with a patchwork of policies, we believe the OECD should continue to examine these issues and work to forge consensus.”
ITI’s comments come as France introduced its proposal outlining a digital services tax.
“France is undercutting the essential work of the OECD,” said Jennifer McCloskey, ITI VP of Policy, Market Access. “France’s proposal, if enacted, would create fragmentation and could threaten the functioning of the international tax system.”
In February, the OECD put out a consultation document and is expected to release an interim report in 2019 and a final report in 2020. Find ITI's full comments here.