The OECD’s Inclusive Framework (IF) on May 28 approved an ambitious Work Plan for the Digitalising Economy Project covering the next 18 months. Released May 31, the 40-page Work Plan notes the IF’s aim of finding a consensus-based long-term solution for a new international tax architecture that addresses both the allocation of taxing rights and nexus as well as unresolved base-erosion/profit shifting (BEPS) issues.
While acknowledging the many gaps that might exist between how jurisdictions approach these issues, the Work Plan establishes an aggressive timeline for considering the development of rules and design standards to feed into delivering a unified framework acceptable to the IF. Important anticipated milestones include a progress report in December 2019 (in which a unified approach may be announced), ongoing Working Party discussions throughout 2019 and 2020, and a final report delivered to the G20 by the end of 2020.
In the video below, Will Morris, deputy leader of PwC’s global tax policy practice, shares some thoughts on the scope and timing of the Work Plan, direction of the Pillar 1 and 2 proposals, and takeaways on business involvement in the process.
