On Dec. 2, Nareit submitted these comments to the OECD in response to its Public Consultation Document on “Global Base Erosion (GLoBE)-Pillar Two” regarding taxation of the digital economy. Among other things, the OECD is considering global minimum tax rules (including additional cross-border withholding taxes). More information about the OECD’s plans to resolve the tax challenges of the digital economy is here .
In particular, Nareit’s comments focus on the risk that new minimum tax rules developed under the GloBE proposal could inappropriately affect REITs if the special circumstances of REITs are not taken into account in the design of such rules. Nareit urges the OECD to incorporate specific rules for REITs in the design of the GloBE proposal.
Additionally, the members of REESA (Asia Pacific Real Estate Association, Association for Real Estate Securitization of Japan, British Property Federation, European Public Real Estate Association, Nareit, Property Council of Australia, and RealPAC of Canada) plus Assoimmobiliare – Industria Finanza e Servizi Immobiari of Italy, Federation des Societies Immobilieres et Foncieres of France, and ZIA, the German Property Federation submitted a joint letter to the OECD on Dec. 6, 2019 with a similar recommendation.
(Contact: Dara Bernstein at dbernstein@nareit.com)