The Organization for Economic Cooperation and Development (OECD) has said governments around the world could boost their tax revenues by more than $100bn if gobal tax rules are updated.
The OECD is pushing to have 137 governments in agreement by the end of 2020 on minimum taxation rules. The body is also working to establish how to ensure tech multinationals, including Google, Apple and Facebook pay their fair share in taxes.
The base erosion and profit shifting (BEPS) international tax reforms are being negotiated by 137 countries ahead of an OECD deadline of the end of the year.
A proposed solution to the tax challenges arising from the digitalization of the economy under negotiation at the OECD would have a significant positive impact on global tax revenues."
This is the first time that the OECD has put a figure to the amount. $100bn is roughly equivalent to 4% of multinational enterprise revenues.
With the current absence of updated rules, a number of countries are moving forward with plans to impose their own national taxes on tech multinationals and digital service companies.
In a statement the Paris-based OECD said: "A proposed solution to the tax challenges arising from the digitalization of the economy under negotiation at the OECD would have a significant positive impact on global tax revenues. Failure to reach a consensus-based solution would likely lead to further unilateral measures and greater uncertainty."
On Friday the OECD published its OECD Secretary-General Tax Report, issued to finance ministers and central bank governors within the G20 group of advanced economies. The new report provides updates on the OECD's international tax agenda, with a particular focus on the progress made in addressing the tax challenges arising from the digitalisation of the economy.
The report was issued ahead of the next meeting of G20 finance ministers and central bank governors which will be held in Riyadh, Saudi Arabia, on 22 and 23 February 2020.