Experts seek clarity from OECD in plan to tax multinational digital giants

Different countries have tried different ways to tax digital firms

Largely welcoming the Organisation of Economic Co-operation and Development's (OECD’s) proposal to tax multinational digital companies, experts said there is a need to define certain terms before participant countries agree on a common ground. 

The OECD on Wednesday had proposed an overhaul in the taxation system in a paper titled Secretariat Proposal for a “Unified Approach” under Pillar One which could force entities, including digital giants Google, Netflix, Facebook, and Amazon, to pay tax in a country, even if they don’t have a physical presence there, but earns income from it.

“Some questions that require clarity in the proposal are