Towards multilateral reform in Digital Service Tax

What do Biden’s proposed tax reforms mean for US and European approaches to Digital Service Tax?

Members event
14 May 2021 — 2:00PM TO 3:00PM

A multilateral approach towards a Digital Service Tax (DST) could address how countries around the world can claim their fair share of revenue that tech giants generate. But divergent unilateral action could spark trade tensions, especially across the Atlantic, and undermine broader efforts for developing an effective regulatory framework for the digital space at a multilateral level.

With COVID-19 catalysing the digitization of the global economy, and cash-strapped governments looking to capitalize on such trends, calls for a multilateral agreement on digital services taxes have increased. Until recently, an agreement through the Organization for Economic Cooperation and Development (OECD) has remained elusive with the US and European states, among others, sparring over the issue. However, the Biden administration’s recent proposals for ambitious reform to the global tax system has raised hopes for a breakthrough. The proposals would limit the ability of multinationals to move profits overseas as well as introduce a worldwide minimum tax rate.

This panel discusses the key differences in US and European approaches to digital tax and the significance of Biden’s recent calls for global tax reform as well as how the issue has demonstrated the need to move towards more effective multilateral cooperation in the digital space as part of a rapidly evolving global economy.

  • What have been the key points of difference between the US and European approaches to DST?

  • How has the pandemic impacted developments concerning how digital services are taxed?

  • What is the significance of Biden’s recent calls for global tax reform on the issue?

  • Does Biden’s proposals increase the likelihood of an agreement being reached?  

  • And what could be the implications if a multilateral solution is not reached?

As with all member events, questions from the audience drive the conversation.

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A member takes the opportunity to ask the panel a question at our event on the digital revolution.
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