Digital taxation initiative of the Organisation for Economic Cooperation Development (OECD)
Circular Ref: A(21)119
Issue Date: 06 Jul 2021
As you may know, the Association has supported global shipping organisations to seek exemption of the shipping sector from the above digital taxation proposals.
You may wish to see the relevant new statement , released by 130 countries and jurisdictions comprising the OECD Inclusive Framework, that outlined the new framework for the global tax reform within the context of the ongoing digital taxation initiative.
Briefly, the latest developments are as follows:
1. It appears that the global package, as preliminarily agreed by the Inclusive Framework, would have a minimal impact on shipping (if any).
2. However, it should be noted that the technical work and the detailed implementation plan are still ongoing for finalisation by October 2021. (The framework is expected to enter into effect in 2023.)
3. Hence, the global shipping organisations are monitoring the development to ensure that the final outcome is favourable to the industry
We will keep you posted about the development. Meanwhile, if you would like to have further information from, or discussion with, the Association secretariat on the matter, please feel free to contact me or our Regulatory Affairs Director, Captain Gautam Ramaswamy.