Unilateral Measures across the Globe
One of the rapidly evolving areas of international taxation is addressing the challenge of what a fair and workable tax system should look like in the modern global economy, where it is possible to generate income from a distance and not pay taxes in countries where a business has customers but no local profit-making activity.
While the OECD has been working toward a global solution, many countries announced or introduced unilateral measures to implement their version of how the digital economy should be taxed. These measures take various forms and, even when they align in concept, the base for taxation can differ significantly. The inconsistency of unilateral measures increases the complexity for businesses that seek to comply with the rules and can increase the overall tax burden.
BDO has created a tool to help navigate this landscape.