Countries May Get Digital Tax Plan B in UN Treaty Change

Developing countries could get a new avenue for taxing digital activities in their jurisdictions under a United Nations treaty amendment set for a vote next week.

The proposal is meant to be an alternative to an OECD digital tax plan also under negotiation, said Rajat Bansal, a member of the U.N. Tax Committee and co-chair of the drafting subcommittee.

If approved, the amendment could put the U.N. at odds with the OECD’s efforts to reach a global consensus next year.

For businesses that earn revenue from certain kinds of digital services, the move could end up meaning they would ...