A group of 137 countries and jurisdictions agreed to move ahead with negotiations to address tax challenges of the digital economy, according to a statement released Friday by the Organization for Economic Cooperation and Development (OECD).
The countries “affirm their commitment to reach an agreement on a consensus-based solution by the end of 2020,” the statement said. The statement followed talks among the countries this week in Paris that were overseen by the OECD.
The multilateral negotiations come as several European countries have been pursuing unilateral digital taxes that would primarily affect major U.S. tech companies such as Facebook, Amazon and Google. These countries are seeking to raise tax revenue from companies that have many users in their jurisdictions but pay little in taxes there.