Trends in International Taxation

International taxation is in strong and radical evolution, driven by the OECD-G20 initiative on BEPS and the subsequent project of international coordination and global minimum taxation, focused on the two Pillars. The Trump reform, innovative in many ways, has marked a break with traditional models and pushed partners/competitors to adjustments. The development of the digital economy has put into crisis the very principles of corporate tax and its international coordination. The OECD has been working to update these principles, against a background of strong tension between competition and protectionism on the one hand and the search for agreements on the other. The draft global minimum tax (second pillar) has reached international agreement. The European Union has adopted a directive transposing the agreement and applying it in a harmonised manner to all Member States. The rules of the first pillar will be defined in 2024. The solutions that will be reached will also have consequences on the question of national web taxes. The Tax Laboratory will closely monitor the evolution of these issues.