Unilateral Measures across the Globe – updated interactive tool
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 our modern global economy – where it is possible to make money 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, in the absence of consensus and in recognition of the time it is likely to take to agree on a workable global framework, many countries have pressed ahead and announced unilateral measures to implement their version of how the digital economy should be taxed. These measures take a range of forms and, even when they align in concept--for example, a digital services tax--the base for taxation can differ significantly. By mid-2021, we had identified over 100 separate measures across 63 countries. Whilst there is a stated intent within the OECD announcement for such measures to be rolled back, the timeline for such an exercise, and the conditions associated with any rollback, remain up for discussion.
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 emerging landscape.