OECD countries agree on international approach to address digital tax

Led by the Organization for Economic Cooperation and Development (OECD), a group of 137 countries agree to move ahead with negotiations to address tax challenges of the digital economy. The initiative is meant to prevent a new trade war, as many of the countries involved already have their own implementations in the works or passed into actual law.

According to the statement, the Organisation for Economic Cooperation (OECD) is committed to reaching a “consensus-based long-term solution to the tax challenges arising from the digitalisation of the economy” and that the group will continue working towards an agreement by the end of 2020.

Amazon and Apple have expressed their support for OECD’s efforts, mainly because this would be an important step in preventing double taxation and unilateral measure.