The digitalization of the economy has highlighted the weaknesses of the current international tax regime, which has traditionally been anchored in the notions of territoriality and permanent establishment. This « digital revolution », which entails the mobility of intangible factors and the ability to dislocate business functions, exacerbates base erosion and profit shifting techniques employed by multinational tech companies. In this context, the OECD has long been a pioneer in addressing the opportunities and challenges of the digital economy. After years of negotiations, an international agreement was reached in October 2021. This reform is poised to revolutionize the field of international taxation by curtailing harmful tax competition. This article will describe the new framework from a US/EU perspective and will show that finding an effective solution that reshapes the principles of international taxation towards a more equitable distribution of taxing rights is easier said than done.

The OECD two-pillar solution: a new paradigm to tackle harmful tax competition? / D'Amelio, Alessandro. - 24:(2023), pp. 4-15.

The OECD two-pillar solution: a new paradigm to tackle harmful tax competition?

Alessandro D'Amelio
2023

Abstract

The digitalization of the economy has highlighted the weaknesses of the current international tax regime, which has traditionally been anchored in the notions of territoriality and permanent establishment. This « digital revolution », which entails the mobility of intangible factors and the ability to dislocate business functions, exacerbates base erosion and profit shifting techniques employed by multinational tech companies. In this context, the OECD has long been a pioneer in addressing the opportunities and challenges of the digital economy. After years of negotiations, an international agreement was reached in October 2021. This reform is poised to revolutionize the field of international taxation by curtailing harmful tax competition. This article will describe the new framework from a US/EU perspective and will show that finding an effective solution that reshapes the principles of international taxation towards a more equitable distribution of taxing rights is easier said than done.
2023
The OECD two-pillar solution: a new paradigm to tackle harmful tax competition? / D'Amelio, Alessandro. - 24:(2023), pp. 4-15.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/230478
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