Daily Tax Report: International

Virus-Related Cross-Border Tax Woes, Gig Economy on OECD Agenda

May 4, 2020, 3:13 PM

The OECD is working on guidance to help companies and tax administrations understand how rules on intercompany transactions apply in an economic downturn, the organization’s tax head said.

The guidance will likely not come out until next year, said Pascal Saint-Amans, director of the Organization for Economic Cooperation and Development’s Center for Tax Policy and Administration. The OECD will examine how multinational companies should attribute profits to their low-risk distributors—related parties in other countries with limited functions, like making sales—when realizing losses.

  • Companies are looking for answers by the summer, but countries need more time to consider the issues, Saint-Amans said Monday on an OECD webcast.
  • OECD officials also announced they expect to release model rules for sharing and gig economy platforms before the summer. The rules could help create a more standardized treatment of reporting and compliance requirements for platforms.
  • The OECD also aims to publish model rules for the taxation of cyrpto-assets before the end of the year, officials said on the webcast.

To contact the reporters on this story: Isabel Gottlieb in Washington at igottlieb@bloombergtax.com; Hamza Ali in London at hali@bloombergtax.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Sony Kassam at skassam1@bloombergtax.com

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