The OECD’s proposed rules on countries’ unilateral measures such as digital service taxes are too restrictive and should be modified, a group that advocates for developing countries said Friday.
The Organization for Economic Cooperation and Development has proposed a blanket ban on DSTs—taxes that individual countries have imposed on giant tech companies over concerns that they aren’t adequately paying taxes on the profits they reap from their customers in those countries. Such measures would be withdrawn and prohibited under the OECD’s global tax agreement, which would instead address those concerns by reallocating a portion of the companies’ profits from ...