The OECD’s Work on Profit Allocation and Nexus Rules for a Digitalized Economy – A Potential Improvement of the International Taxation Framework?

The digitalization of the economy has sparked a debate that may fundamentally change international taxation. The regulatory changes contemplated by the OECD/G20 Inclusive Framework would affect most industries and would change the global balance of taxing rights. This article analyses the proposed rules and their implications for taxpayers and tax authorities.