The digital economic chain – ICT in the loop of the OECD
regulations
Author:
Ramona LUPOI JURUBIŢĂ
JEL:
M41
DOI:
10.20869/AUDITF/2017/148/655
Keywords:
OECD, BEPS, ICT, R&D, transfer pricing,
substance, value added, know-how, innovation, taxable
profits
Abstract:
Taxation is today at the top of the agenda of
international organizations, a reflection of governments’
intent to gather as many taxes as possible into their
jurisdictions. There is an assumption that base erosion
and profit shifting exists, carried out in some cases as a
result of aggressive tax planning or, in other cases, as a
result of the lack of coherence of the tax systems of
various jurisdictions. There is an estimation that
countries worldwide lose taxable income equivalent to
between 4% and 10% of global revenues from corporate
income tax. The Romanian ICT business is generating
significant profits.
This paper intends to analyze the information technology
sector, in which businesses are rapidly growing, in line
with technology for all sectors of activity and in line with
the EU’s strategy for promoting and supporting
innovation.
The objective of this paper is to analyze how the ICT
sector may be affected by the new approach of
allocating profits to various jurisdictions and how R&D
activities may also need to be reanalyzed, in terms of
fees charged between multinationals.
Romania can be proud of its ICT professionals and the
business generating profits in the sector. The author has
also analyzed how other countries may benefit from
profits from international transactions carried out in the
sector and how Romania can continue to support it.
Abstract(209KB)
Article(751KB)