The Organization for Economic Co-operation and Development (OECD) has proposed a worldwide reform of corporate taxation, reversing a century of rules that allowed technology companies like Facebook, Amazon, Netflix, and Google to transfer profits from one point of the planet to another in order to minimize their tax costs.

The proposals are aimed at extracting more corporate tax from major international companies, whether they operate digitally or control highly profitable brands, such as luxury manufacturers or world-class carmakers.

The beneficiaries would be large countries such as the United States, China, the United Kingdom, Germany, France and Italy, as well as developing economies. Thus, there would be an advance in the collection of taxes on corporate income earned from sales made in their territories, while companies, tax havens and low tax jurisdictions, such as Ireland, would be on the losing side.

“It is unquestionable that as a result of the advancement of the global economy and technology, it is necessary to have an internationalized and more integrated tax system. It is with this in mind that the new OECD proposal has been presented to member countries in order to enable the taxation of large enterprises in places where they are actually profitable”, says Bruno Zaroni, founding partner of Zaroni Advogados.