The OECD has today published its hotly anticipated interim report on the taxation of the digital economy.
The report adopts a position that is consistent with the UK digital economy update paper published earlier this week, by declining to recommend or mandate interim measures for taxing the digital economy.
Instead, the paper emphasises the need for coordinated and multilateral action, which is a welcome stance from the perspective of business.
As we start to join the dots in relation to the UK, EC, and OECD activities currently ongoing in this space, it appears that the chances of a unilateral digital PE are beginning to look more remote. Interim measures are certainly not off the menu, but the clear message coming through is that the complexities of introducing new tax rules for the digital economy merit a joined-up and coordinated approach at international level.
Next week sees the publication of the final EC position paper on this topic, which will complete the hat trick of recent announcements. Watch this space for the final installment in this fascinating trilogy.