On 19 February 2019 the OECD announced that the consultation period in relation to the public consultation document on possible solutions to the tax challenges of digitalisation has been extended to 6 March 2019. The public consultation meeting on the issue is still scheduled for 13 and 14 March 2019.
The consultation document in relation to the tax challenges of the digital economy was published on 13 February 2019 by the OECD’s Inclusive Framework.
The consultation concerned tax challenges from digital businesses that can create value through activities linked to a jurisdiction without actually having a physical presence there. This is mainly due to their ability to build up scale without mass; a heavy reliance on intangible assets; with an important role for data and user participation. The Inclusive Framework is currently looking a three proposals to deal with the tax issues arising. The proposals are the user participation proposal; the marketing intangible proposal; and the concept of significant economic presence and these are outlined in the consultation document.
