The Association of International Certified Professional Accountants (AICPA) is calling for international coordination to develop a solution to tax concerns raised by digital transactions.
The AICPA recently issued a policy paper that seeks to educate, enlighten and stimulate discussion about taxation of the digitalized economy.
“International tax issues and tax policies are most effective and efficient when tax systems operate within an internationally agreed upon platform and approach,” the paper stated.
The association does not take a position on a specific tax proposal or law, but it does reference various proposals that have been implemented or are in development by international organizations. It examines the issues through the prism of AICPA’s Guiding Principles of Good Tax Policy and identifies issues based on the concepts in these guiding principles.
Among the proposals cited, the paper references proposals made by the European Commission, including one that calls for a temporary three percent tax on gross receipts from digital activity with the European Union.
Also, some individual countries have implemented or proposed digital tax regimes, while other nations, like the United States, prefer a global consensus on updating tax regimes to reflect the changes brought on by the digitalization of the world’s economy.
AICPA – which represents the voice of the American Institute of CPAs and the Chartered Institute of Management Accountants – is distributing the paper globally to policymakers and multinational organizations.