Trends
91 nations commits to no taxes on cross-border data movement
91 nations,including the US,Japan and EU members,will keep exempting cross-border data from taxes,backing digital economy expansion.
Headline
91 nations,including the US,Japan and EU members,will keep exempting cross-border data from taxes,backing digital economy expansion.
Context
OUR TAKE The agreement is a temporary measure to support digital economy growth and innovation without new taxes on cross-border data flows, a contentious issue due to some countries advocating for such taxation.However, many countries are concerned that such taxes could stifle innovation and economic growth, particularly in the tech sector. The agreement to continue not taxing cross-border data movement is a step towards finding a more permanent solution to this issue. –Rebecca Xu, BTW reporter In a landmark agreement concluded last Friday, 91 countries concurred on updated e-commerce regulations, notably prolonging the suspension of taxes on cross-border digital transmissions. This decision was made during a meeting of the Organisation for Economic Co-operation and Development ( OECD ) in Paris.
Evidence
Pending intelligence enrichment.
Analysis
The Joint Statement Initiative on Electronic Commerce states, “No Party shall impose customs duties on electronic transmissions between a person of one Party and a person of another Party”. “The digital economy is a dynamic and rapidly evolving sector that requires a flexible and forward-looking approach,” said a spokesperson for the coalition. “Our current agreement not to tax cross-border data movement reflects our commitment to innovation and global economic cooperation”. It is important to note that this agreement is not legally binding,and countries are free to implement their own policies on cross-border data taxation. However, the consensus reached by the 91 nations at the OECD meeting is a positive sign that international cooperation on digital taxation issues is possible. Also read: G20 talks on global tax deal continue amid US tariff threat
Key Points
- A group of 91 nations,including the United States, Japan, and members of the European Union, have agreed to continue not taxing cross-border data movement for the time being.
- By agreeing not to tax cross-border data flows, these countries are signalling their support for the continued growth of the digital economy.
Actions
Pending intelligence enrichment.
