DCO whitepaper calls for multilateral dialogue on international digital economy taxation plans

DCO whitepaper calls for multilateral dialogue on international digital economy taxation plans

Riyadh: The Digital Cooperation Organization (DCO), the global organization dedicated to enabling digital prosperity for all, has released a new whitepaper that is intended to encourage dialogue and debate around international taxation proposals for the digital economy.

The digital economy has changed the way many businesses operate, but the mobility of digital businesses makes it difficult to ensure that taxation is aligned with the location where economic activities take place. According to EU estimates, companies with digital business models pay on average half the effective tax rate of companies with traditional business models.[i] This can mean that some nations miss out on tax revenues that would normally be generated in their country.

There are currently two main proposals to address the issues of digital taxation, the OECD’s BEPS 2.0, and a second proposal from the UN Tax Committee. The DCO, in its role to support its member states and promote the digital economy as a means to sustainable economic growth, has now published a whitepaper that reviews the two main proposals to address the issue of digital taxation, and proposes further dialogue on the issue.

DCO Secretary-General Deemah AlYahya commented: “The digital economy has created a fast-moving, dynamic and borderless business environment That