OECD’s Global Tax Reform Surprisingly Positive for Developing Countries // ZEW Study Evaluates Global Tax Reforms for the Digital Economy and Developing Countries

ZEW Study Evaluates Global Tax Reforms for the Digital Economy and Developing Countries

In October 2023, the OECD released a multilateral agreement reigniting the debate on the taxation of the digital economy. The UN proposed an alternative tailored to the needs of developing countries. Both proposals aim to grant states new taxing rights. While the OECD approach has been criticized in academia for not adequately addressing the tax needs of developing countries, a new study by ZEW Mannheim and the Universities of Mannheim and Kiel now reaches a different conclusion.

"Our research results show that the OECD approach is likely to generate higher tax revenues for developing countries and better addresses the specific interests of these states compared to the alternative UN proposal," explains Jost Heckemeyer, Research Associate at ZEW Mannheim and professor at the University of Kiel. "Overall, the OECD approach leads to more fairness in international taxation than the UN proposal," adds Inga Schulz, PhD student and researcher at the University of Mannheim.