Tax Challenges Arising from Digitalisation – Economic Impact Assessment
Inclusive Framework on BEPS
The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project laid the foundations
of the project to address the tax challenges arising from the digitalisation of the
economy with the release of the BEPS Action 1 Report. Since then, the OECD/G20 Inclusive
Framework on BEPS has been working on the issue, delivering an interim report in March
2018, at the request of the G20.
In May 2019, the Inclusive Framework adopted a Programme of Work, which was endorsed
by the G20 Finance Ministers and G20 Leaders in June 2019. The Programme of Work outlined
proposals in two pillars that could form the basis for a multilateral consensus-based
solution. It also provided that the OECD Secretariat would undertake an economic impact
assessment of the proposals to ensure that all members of the Inclusive Framework
could be kept fully informed of the economic and tax revenue impact of key decisions
relating to the proposals.
This report presents an ex ante analysis of the economic and tax revenue implications
of the Pillar One and Pillar Two proposals under discussion by the Inclusive Framework
as part of its work to address the tax challenges arising from the digitalisation
of the economy.
Published on October 12, 2020Also available in: French
As part of the work by the OECD/G20 Inclusive Framework on BEPS relating to the tax challenges arising from the digitalisation of the economy, the OECD has been carrying out an economic analysis and impact assessment of the Pillar One and Pillar Two proposals. On 20 October 2020, experts from the OECD's Centre for Tax Policy and Administration and Economics Department presented the methodology and estimates of the impact assessment during this webinar.