Tax Challenges of the Digitalization of the Economy
Summary
SIFMA sent comments to the OECD in response to the public draft released on 13 February 2019 by the OECD entitled “Addressing the Tax Challenges of the Digitalisation of the Economy” (Consultation Document).
In this submission, SIFMA addresses the two areas discussed in the Consultation Document. The first area relates to proposals for revised profit allocation and nexus rules aimed at expanding taxing rights by the user or market jurisdiction based on the existence of certain intangible assets, including so-called marketing intangibles. The second area relates to the global anti-base erosion proposal that includes the income inclusion rule (a minimum tax on foreign source earnings) and the tax on base eroding payments (a tax through the denial of tax deductions for so-called undertaxed payments and the denial of treaty benefits under the subject to tax rule).
Excerpt
Submitted via email to [email protected]
Organisation for Economic Cooperation and Development
Centre for Tax Policy and Administration
Tax Policy and Statistics Division
2, Rue André Pascal
75775 Paris, France
Re: Comment Letter on the Public Consultation Document: Addressing the Tax Challenges of the Digitalisation of the Economy
Submission by the Securities Industry and Financial Markets Association (SIFMA) In Response to the 13 February 2019 Consultation Document on the Digitalisation of the Economy
I. Introduction and summary of recommendations
These comments are being submitted to the OECD by the Securities Industry and Financial Markets Association (SIFMA)1 in response to the public draft released on 13 February 2019 by the OECD entitled “Addressing the Tax Challenges of the Digitalisation of the Economy” (Consultation Document). In this submission, we address the two areas discussed in the Consultation Document. The first area relates to proposals for revised profit allocation and nexus rules aimed at expanding taxing rights by the user or market jurisdiction based on the existence of certain intangible assets, including so-called marketing intangibles. The second area relates to the global anti-base erosion proposal that includes the income inclusion rule (a minimum tax on foreign source earnings) and the tax on base eroding payments (a tax through the denial of tax deductions for so-called undertaxed payments and the denial of treaty benefits under the subject to tax rule).