Facebook and Google have backed a multilateral solution to digital taxes proposed by 134 nations. The OECD released its multinational tax governance framework this week, a key first step in establishing one of the most significant shifts in the international tax system since the 1920s. The proposed changes target digital giants with global turnover of more than $1.23 billion.
The proposal addresses the "excess profit" of sales made by digital multinationals in countries without having a commensurate presence there for tax purposes. The alternative is a proliferation of countries bringing in their own digital services tax laws.