The OECD Proposals for Reforming Corporate Tax – A Plan with Undesirable Side Effects?

The business models of the big internet companies like Google, Apple, Facebook, and Amazon allow them to offer services in countries where they have no physical presence and no employees. However, according to current international tax regulations, a physical presence is often a prerequisite for levying taxes in a country. This has led to demands to reform the taxation of multinational corporations. In fall 2019, the OECD presented a proposal for a uniform approach to modernizing international taxation. Is the concept convincing and can it be put into practice? Should international corporate taxation be more closely aligned with the place where value is created? How will tax revenue change, and how will it be redistributed? Who will lose, and who will win?