In February 2019, the OECD launched a Consultation Document on the digitalisation of the economy indicating a way forward based on two pillars (revised nexus and profit allocation rules, and global anti-base erosion approaches), followed by a Public Consultation on March 15th and 16th, 2019. Finally, the OECD published a Programme of Work to develop a consensus solution to the tax challenges arising from the digitalisation of the economy on May 31st, 2019. The first part of this article discussed the different approaches for taxing the digitalised economy embedded in those documents. In part II of this article, Stefan De Baets and Alicja Smolkowska critically analyse the approaches put forward by the OECD as well as some alternatives that other organisations have suggested. In their conclusion, the authors indicate some recommendations for the negotiators sitting around the big inclusive framework table.
