Taxation

Material Resources, Human Labour, and Data: The Long-Forgotten Elements of the Digital Economy's True Value Chain and an Indication for its Adequate Taxation

Taxing the digital economy has been on the international tax agenda for almost 30 years, revolving about how to tax an industry increasingly based on intangibles, scale effect, and market reach without a physical presence. But following Crawford and Joler’s concept of extractivism (2020; 2021), the digital economy is not only about BATX or GAFAM, but also about material resources, human labor, and data. The article analyses those long-forgotten elements of the Digital Economy’s true value chain, and, as the most recent two-pillar-based reform of the Inclusive Framework does actively exclude them, how those elements could be considered in the reform process.

Call for Book Chapter Abstracts: Taxation, Human Rights and Sustainable Developments: Global South Perspectives

Contributions to the book are expected to contain conceptual analyses and country studies on taxation, human rights, and sustainable development. The goal is to present comparative, historical and contemporary accounts that will enable cross-exchange of ideas, practices and innovative solutions for taxation and human rights and improving its effectiveness in the Global South.

Nigeria’s Finance Act 2021 and the Digital Tax Framework: Another Attempt to Boil the Ocean?

Nigeria is being careful with its approach in its quest to tax the digital economy. Rather than enacting a stand-alone digital service tax law, Nigeria is amending key parts of its corporate income tax law to accommodate effects of the digital economy. These amendments, particularly the latest amendment on turnover assessment, are not substantially different from an average digital service tax. Both taxes are levied on turnover of digital platforms. The 6% tax rate on turnover is likely to be a major concern for non-resident companies as it is much higher than the digital service taxes in other jurisdictions. France and UK impose 3% and 2% digital service tax respectively; while Kenya, a comparable developing country in the same region, has 1.5% digital service tax. Canada is in advanced stage of launching its 3% digital service tax on all in-country revenues earned on digital activities.

Roadmap to the digital tax debate for developing countries

This article reviews the policy advancements on digital taxation, the individual initiatives that some developed countries have enacted, and considers some recommendations for developing countries to address future changes. It also contains a brief analysis of the Ecuadorian VAT reform for digital services and other possible options that need to be considered by the country.

Digital Economy in Latin America and the Caribbean: What Can Tax Administrations Do?

December 9, 2020

This blog reflects on an issue as current and complex as the control of the digital economy by the Tax Administrations (TAs). The topic is very important in Latin America and Caribbean because it is the most unequal region in the world with extreme poverty. The prevalence of informal economy in Latin America and Caribbean requires that controling the digital economy and combating tax evasion be a priority for the region.

Digital Economy and Taxation in Latin America

Taxing the Digital Economy in Latin America and the Caribbean: What can be done

The aim of this contribution is to suggest some courses of action for Latin America and the Caribbean (hereinafter, LAC) in relation to the taxation of the digital economy. For this purpose, after a brief description of the international background on direct and indirect taxation, I refer to the state of play in the LAC region, making a few preliminary considerations and presenting some generalities on the measures that have been adopted. Finally, I will share some thoughts and recommendations.

Digital Taxation in Peru and Tax Treaties

Returning to a global vision of the analyzed matter, it should be noticed that in its long path to becoming an OECD member, Peru closely follows the discussion progress towards a global solution to tax challenges arising from digitalization. Nevertheless, Peru has not stablished yet unilateral tax measures to levy high digitalized services especially in the context of B2C services, but the intention is present according to a later comment.

Digital Services Taxation in Chile: the “Digital VAT” Solution, Income Taxation, and Digital Permanent Establishment

On August 23, 2018, Sebastián Piñera, president of Chile, with the general support of all political actors, sent to the Congress a Bill proposing a new tax, on the supply of digital services rendered by digital platforms. This Bill was introduced with a general objective, included in its title, to “modernize the Chilean tax system, intending to incorporate the best practices observed at the international level, as well as taking care of the challenges and particularities that technological advances imply, such as the digital and collaborative economy”.

The Imposition of DST as a Means of Exercising Taxing Rights in the Digital Economy: Policy and Economic Analysis of Kenya

Most of DSTs significant propositions are based on several grounds, including the goal of having businesses and corporations, especially multinational corporations (MNCs) pay their due share on taxes, taxing profits derived from consumers activities in their territory, or adapting traditional regulations and systems of international taxation to guide and inform new forms of unsettling business models that can be conducted virtually. This is following the debate that digital firms are undertaxed.