ifo Schnelldienst 03/2020: OECD Proposals for Reforming Corporate Tax

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?

With contributions from:

• Pascal Saint-Amans: The Plans of the OECD for the Tax Challenges of the Digital Economy
• Clemens Fuest: Taxing Companies at the Place of Value Creation – A New Guiding Principle for International Taxation?
• Joachim Englisch: International Corporate Tax Reform – More than Costly Symbolic Politics?
• Deborah Schanz: The Global Restructuring of the Tax System May Still Fail Due to the Details
• Andreas Oestreicher: The OECD’s Proposals for Reforming Taxation Rights and their Significance for Multinational Companies
• Nadine Riedel: The OECD GloBE Proposal – Objectives, Economic Effects, Design 
• Pola Schneemelcher: The Reform of the International Tax System – An Opportunity for Europe
• Wolfgang Schön: The New World Tax Order – Political Haste or Conceptual Delay?
• Luzius Cavelti and Christian Jaag: Why International Tax Law Does Not Fit the Nature of the Legal Entity