GTA-OECD workshop addresses tax challenges due to digitization

The General Tax Authority (GTA) organized a joint technical workshop with the Organization for Economic Cooperation and Development (OECD), with the participation of representatives from the public agencies and private sector stakeholders to discuss the proposed changes to international tax rules to address tax challenges arising from digitization of the economy.
GTA stressed that the workshop was a good opportunity for all parties to exchange views, information and the best practices related to the international commitments, in order to address the challenges arising from digitization, and the mechanism of applying Pillar One on digital companies and Pillar Two on companies with foreign branches.
“Despite the great interest in promoting international cooperation on improving tax laws and regulations, we still need to find a balance between our endeavors to enhance the flexibility of commercial activities, increase tax revenues and ensure tax continuity, on the one hand, and the need to provide attractive tax investments that encourage the private sector, on the other hand. This has become very important, and it requires careful studies to come up with tax systems that allow the flexibility required for better private sector investments, while simultaneously increasing tax revenues to support national economic plans and enable better public spending,” GTA added.