On Taxation of the Digital Economy. Where Are We Now and Where Are We Going?

Alin Irimia, Attila Tamas-Szora and Iulian Dobra
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Alin Irimia: "1 Decembrie 1918†University of Alba Iulia
Attila Tamas-Szora: "1 Decembrie 1918†University of Alba Iulia

Finante - provocarile viitorului (Finance - Challenges of the Future), 2021, vol. 1, issue 23, 95-108

Abstract: This study aims to contribute to the continuing discussion about the compatibility and feasibility of the OECD/G20 October Statement. By this means, a literature review is conducted to gain appropriate considerations to the Pillar One and Two implementations. Amongst the findings are that: i) Approach Pillar 1A: This philosophy eliminates the request-demand principle and adopts a uniform approach to taxation and will allow developing countries to focus on their core activities and avoid becoming part of an open market environment; ii) As countries step up their efforts to attract more income-producing businesses, they will need to adopt more sophisticated tax systems to compete effectively. A new tax system is limited by a set of barriers that prevent it from becoming overly complex and inefficient; iii) the main reason for limiting competition is that tax administrations deliver lower-quality services to their clients. A new approach will allow tax administrations to compete more effectively; and iv) Since many tax administrations with DST income will lose what they gain due to the implementation of Pillar 1&2, the real results will need to be studied.

Keywords: digital economy; globalization; global minimum tax; digital service; tax; transfer pricing; tax administration (search for similar items in EconPapers)
JEL-codes: E31 E62 G18 G3 H20 H21 H26 H87 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aio:fpvfcf:v:1:y:2021:i:23:p:95-108

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