The US-based Association of International Certified Professional Accountants has called for international coordination to develop a global solution to the tax challenges posed by the digital economy.
In a policy paper issued on October 23, the Association concluded that “international tax issues and tax policies are most effective and efficient when tax systems operate within an internationally agreed upon platform and approach.”
The policy paper does not take a position on any specific tax proposal or existing law, but seeks to “educate, enlighten, and stimulate the discussion” about digital economy taxation.
The paper concludes: “We acknowledge the recent efforts on taxation of the digitalized economy by the OECD during its BEPS initiative and strongly urge all countries to work within such international organizations to develop a framework to tax the digitalized economy.”
“Such a framework should apply consistent and internationally recognized concepts of permanent establishment, prevent double taxation, provide MAP relief to manage controversies where value and/or income is taxed more than once, and adhere to global standards regarding residency versus sourcing based taxation,” the paper notes.
See Policy Paper.