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    Taxation On Digital Economy

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    Kannagi Vhn
    This paper discusses taxation of the digital economy. It notes that digitalization has dramatically changed how businesses operate globally through virtual platforms without physical infrastructure. Major technology companies like Google, Apple, Facebook, and Amazon operate across borders through intangible assets like data, algorithms, and user content. Current international tax laws based on physical presence are unsuitable for these digital business models. As a result, digital multinationals can exploit tax laws not intended for the digital era. The paper will examine models for taxing digital transactions to ensure a fair global order and address issues like double taxation of digital businesses in multiple jurisdictions, violating double tax avoidance treaties. It focuses on finding solutions within international taxation for the taxation of the digital economy.

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    Taxation On Digital Economy

    Uploaded by

    Kannagi Vhn
    17 views2 pages
    This paper discusses taxation of the digital economy. It notes that digitalization has dramatically changed how businesses operate globally through virtual platforms without physical infrastructure. Major technology companies like Google, Apple, Facebook, and Amazon operate across borders through intangible assets like data, algorithms, and user content. Current international tax laws based on physical presence are unsuitable for these digital business models. As a result, digital multinationals can exploit tax laws not intended for the digital era. The paper will examine models for taxing digital transactions to ensure a fair global order and address issues like double taxation of digital businesses in multiple jurisdictions, violating double tax avoidance treaties. It focuses on finding solutions within international taxation for the taxation of the digital economy.

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    Taxation on Digital Economy

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    This paper discusses taxation of the digital economy. It notes that digitalization has dramatically changed how businesses operate globally through virtual platforms without physical infrastructure. Major technology companies like Google, Apple, Facebook, and Amazon operate across borders through intangible assets like data, algorithms, and user content. Current international tax laws based on physical presence are unsuitable for these digital business models. As a result, digital multinationals can exploit tax laws not intended for the digital era. The paper will examine models for taxing digital transactions to ensure a fair global order and address issues like double taxation of digital businesses in multiple jurisdictions, violating double tax avoidance treaties. It focuses on finding solutions within international taxation for the taxation of the digital economy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views2 pages

    Taxation On Digital Economy

    Uploaded by

    Kannagi Vhn
    This paper discusses taxation of the digital economy. It notes that digitalization has dramatically changed how businesses operate globally through virtual platforms without physical infrastructure. Major technology companies like Google, Apple, Facebook, and Amazon operate across borders through intangible assets like data, algorithms, and user content. Current international tax laws based on physical presence are unsuitable for these digital business models. As a result, digital multinationals can exploit tax laws not intended for the digital era. The paper will examine models for taxing digital transactions to ensure a fair global order and address issues like double taxation of digital businesses in multiple jurisdictions, violating double tax avoidance treaties. It focuses on finding solutions within international taxation for the taxation of the digital economy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    LAW AND TECHNOLOGY

    PAPER TITLE:

    TAXATION ON DIGITAL ECONOMY

    AUTHOR DETAILS:

    NAME: CHANDRIKA B

    DESIGNATION: POST GRADUATE STUDENT

    INSTITUTION: THE TAMIL NADU Dr. AMBEDKAR LAW UNIVERSITY

    SCHOOL OF EXCELLENCE IN LAW, CHENNAI

    ADDRESS: T10, SAI KRUBA, THARAMANI LINK ROAD, VELACHERY, CHENNAI,


    TAMILNADU 600042

    EMAIL ID: [email protected]

    CONTACT DETAILS: 7708639590


    Abstract:
    The concepts of taxation, essentially important to any governmental structure, have been
    modified over time to accommodate the rapid changes in the economic system. Digitalization
    has brought dramatic changes in the way businesses operate. The term "digital service tax"
    (DST) refers to a tax collected on revenue generated by providing digital services that is not
    defined in any domestic law or international treaty. It is levied by the source country on
    revenue generated in such countries by global technology companies. It has created new
    opportunities to reshape the existing business models through the use of technology, allowing
    businesses to develop a virtual presence on a global platform. Corporate giants such as
    Google, Apple, Facebook and Amazon (referred as GAFA) operate on a global scale without
    requiring significant physical resources. Their operations are actually driven by intangibles,
    data, users, user created content, sophisticated algorithms and data analytics. For example,
    consumers no longer need to buy a DVD to watch a movie; they can digitally rent/buy the
    movie using digital services. The exponential growth in digital commerce has challenged the
    current international tax framework, which is primarily based on the concept of a fixed place
    of business. These tax laws have become unsuitable and inadequate for the dynamic business
    models of the digital era. As a result, digital businesses, particularly multinational digital
    enterprises, have been able to take advantage of tax laws and policies that were written for
    an industrial age and are no longer appropriate for today's digital economy. The search for
    a global solution has resulted in divergence in approaches adopted by countries.
    This paper delineates on international taxation, a model of taxation of digital transactions
    can help to ensure a more just and equitable world order and also addresses a huge problem
    related to the taxation of the digital economy that is the double taxation of various digital
    businesses being taxed in multiple jurisdictions, resulting in a violation of double taxation
    avoidance agreement (DTAA) treaties.
    Key words: Digital, Taxation, Global, DTAA, Services

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