Assessment of EU and OECD Proposal for Taxing the Digital Economy

During the Covid pandemic, with economies in recession, the need for public resources became a top political priority. The need to reformulate tax systems today is fully accepted by political and academic agents. Several proposals are currently under work at the Organization for Economic Cooperation and Development (OECD) and in the European Union (EU). This article has three objectives. First, it describes the proposals of the OECD and the European Commission on the taxation of the digital economy. Secondly, it looks at the aspects that today divide the countries of the European Union and the OECD and that have hitherto prevented the much-desired consensus on this issue. Finally, based on a small sample of multinational companies with a strong digital presence within the European Union, it elaborates a simulation of both proposals to highlight the impacts of such taxes on the tax revenues of each Member States.