Publication:
International Tax Reform, Digitalization, and Developing Economies

Simple item page
dc.contributor.authorClavey, Colin
dc.contributor.authorPemberton, Jonathan Leigh
dc.contributor.authorLoeprick, Jan
dc.contributor.authorVerhoeven, Marinus
dc.date.accessioned2019-10-15T17:43:59Z
dc.date.available2019-10-15T17:43:59Z
dc.date.issued2019-10
dc.description.abstractWhile significant progress has been made in international tax cooperation, the interests of developing economies require greater priority and attention. This paper considers policy options that are currently under consideration in different international fora, drawing on the WBG's work in supporting tax policy and administration reforms in developing economies. The overall direction of the reform debate is promising and could shift taxing rights towards market jurisdictions, as well as strengthen the tools available to deter profit shifting to low-taxed entities. Some of the proposals under discussion could be adopted in the near-term but need to be better tailored to developing economy needs. This paper identifies five areas for improvement. First, the proposals relating to the allocation of global non-routine profits need to be simplified and incorporate more formulaic approaches. Second, work on the allocation of taxing rights should include in its scope the option to reallocate all non-routine profit, rather than only that part reflecting user value or marketing intangibles. Third, the (income inclusion) idea of targeting lowly taxed profits is sound, but it needs to be a tool for both capital importing and exporting countries. Fourth, detailed guidance is needed on the use of withholding tax as an efficient collection mechanism for source jurisdictions and on the application of mandatory safe harbors with an arm’s length let out. These tools can help ensure efficient administration in developing economies. And, fifth, effective administration requires appropriate access to information. Practical limitations to accessing relevant information for developing economies need to be removed. This should include an amendment to current standards allowing jurisdictions to impose robust domestic filing obligations for CBCR (and/or similar future additional reporting obligations).en
dc.identifierhttp://documents.worldbank.org/curated/en/735001569857911590/International-Tax-Reform-Digitalization-and-Developing-Economies
dc.identifier.doi10.1596/32530
dc.identifier.urihttps://hdl.handle.net/10986/32530
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesMTI Discussion Paper;No. 16
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectRESOURCE MOBILIZATION
dc.subjectTRANSFER PRICING
dc.subjectTAX ADMINISTRATION
dc.subjectPROFIT DIVERSION
dc.subjectMINIMUM TAXATION
dc.subjectINTERNATIONAL TAXATION
dc.subjectINTERNATIONAL TAX COOPERATION
dc.titleInternational Tax Reform, Digitalization, and Developing Economiesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleInternational Tax Reform, Digitalization, and Developing Economies
okr.date.disclosure2019-09-30
okr.doctypePublications & Research
okr.doctypePublications & Research::Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/735001569857911590/International-Tax-Reform-Digitalization-and-Developing-Economies
okr.guid735001569857911590
okr.identifier.doi10.1596/32530
okr.identifier.externaldocumentum090224b08716759f_2_0
okr.identifier.internaldocumentum31445424
okr.identifier.report142256
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/735001569857911590/pdf/International-Tax-Reform-Digitalization-and-Developing-Economies.pdfen
okr.topicPublic Sector Development::Tax Administration
okr.topicLaw and Development::Tax Law
okr.topicMacroeconomics and Economic Growth::Tax Havens
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.unitMacroeconomics, Trade and Investment Global Practice
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
International-Tax-Reform-Digitalization-and-Developing-Economies.pdf
Size:
707.46 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
International-Tax-Reform-Digitalization-and-Developing-Economies.txt
Size:
157.45 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Other papers