United Nations negotiators working on new global tax rules issued a draft paper suggesting options for how and when countries can tax cross-border services that result from remote work and digitalization.
The draft for the cross-border “protocol” proposed, among other things, that physically performing services in a jurisdiction should give that jurisdiction the right to tax. The paper, released Wednesday, also called for new rules on nexus—a legal connection between a taxpayer and a jurisdiction allowing the jurisdiction to tax—that take into account new ways of doing business.
For some digitally delivered services, a source rule based on the identity ...