The Base Erosion and Profit Shifting project (“BEPS”) was initiated in 2013, when the OECD was tasked with the mission to combat tax avoidance by multinational enterprises that exploit gaps and mismatches in the international tax regimes, for the purpose of eroding their tax base and shifting profits from high-taxation jurisdictions to low or no taxation jurisdictions.
The OECD identified the extraordinary challenges of the digital economy to the traditional international taxation principles, such as physical nexus and the arm’s length principle, as one of the main focus areas of the BEPS.
In this legal update, we bring to your attention the recent publications of the OECD with respect to digital taxation, as well as the current status of digital taxation initiatives in Israel.
Click here to read the full update:
