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While some countries in both the IF and EU are keen to move quickly toward a new international allocation of corporate taxation rights that takes certain digital factors (such as contributions from users) into account, there are also countries within each that do not believe that this is necessary. The EC and the OECD recommend very different solutions to this divergence - where the OECD has proposed a two year, detailed review of the issues, aiming to bring countries together, the EC has recommended that EU countries assert the right to tax the (direct and indirect) profits generated from provision of digital services to users in the EU, and levy turnover taxes until treaty partners agree to recognise this right.

Read more in the attached PwC Tax Policy bulletin.

For more information, please speak to your usual PwC adviser.