Developed and developing economies negotiating a new United Nations tax treaty proposed competing visions Tuesday for how the agreement should allocate taxing powers over cross-border services.
Developing countries are pushing the UN to create a treaty that would mandate the use of new nexus rules for cross-border services—the legal connection between a taxpayer and a jurisdiction that gives the jurisdiction a right to tax. They say traditional nexus rules based on physical presence fail to capture digital business happening within their borders, triggering tax revenue losses.
Africa’s 54 countries told a meeting of a negotiating committee in New York they ...