UN draft protocol would expand nations’ right to tax tech giants

A May 5 draft, due to be discussed in New York in August, takes aim at where digital revenue is taxed and by whom.

A new draft protocol circulating inside the United Nations tax process would let countries tax companies like Google, Amazon and Meta based on where their users are, rather than where the companies are incorporated.

The text, dated May 5 and first reported by Bloomberg Tax, is the most concrete attempt yet to convert a decade of debate over digital taxation into binding international law.

The draft covers a broad list of digital activities. Online advertising, search, social media platforms, online gaming, cloud computing, and the supply of user data all fall within scope. So do online intermediation platforms and digital content services, which between them capture most of the business models the largest US platforms run on.

The protocol sits inside the UN Framework Convention...

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