Companies Call For Simple Formula to Tax Digital Profits

Procter & Gamble Co. and Johnson & Johnson tax directors said the OECD needs to propose a simple formula for calculating the digital profits of multinational companies.

The Organization for Economic Cooperation and Development is considering basing country taxing rights on user-generated value or marketing intangibles, or adopting a new rule for significant economic presence.

The OECD aims to have broad political agreement on an approach by the end of the year.

“Of the three ways forward, we agree most with the intangibles mechanism with the formulaic approach,” Amy Roberti, head of U.S. government relations for Procter & Gamble, said ...