International review for October 2020

The publication of new pillar one (profit allocation and nexus) and pillar two (global minimum taxation) blueprints by the OECD as part of its plans to modernise taxation of the digital economy have dominated headlines in the tax world this month, with the OECD now aiming to reach a consensus by mid-2021. The economic analysis published alongside the proposals suggests the reforms could generate an increase in corporate income tax revenues by $50bn–$80bn. The UK government is pressing ahead with its Brexit plans announcing a new streamlined freeports regime. Governments around the world continue to offer support to taxpayers in response to covid-19 with October seeing extensions to wage support schemes in the UK and the Netherlands. There have also been rumoured changes to planned reform of the Swiss withholding tax regime, and further guidance published on a new withholding tax in India which applies to e-commerce operators.