OECD to push on digital tax after USA withdrawal

International digital tax negotiations lead by OECD is at stake after US Treasury Secretary, Steven Mnuchin, wrote a letter to EU finance ministers stating that USA has decided to end negotiations with the European Union on the issue of digital economy taxation. This statement is followed by Chancellor Rishi Sunak joining forces with French, Spanish and Italian finance ministers to write back to the US Treasury Secretary to say they will press ahead with digital taxes arguing that the pandemic is making tech companies “more powerful and more profitable”.

Furthermore, the OECD confirmed that it will continue its work to develop a multilateral approach to the taxation of the digital economy saying it is mandated by the G20 to deliver a consensus-based solution by the end of 2020 on the taxation of the digital economy based on a two-pillar approach.