Taxing the Digital Economy

28 Mar 2018 | Client publication/article

How should digital businesses be taxed?

It seems that everyone is currently trying to answer this question. The international tax system currently works on the basis that the profits of a business should be taxed in the countries in which the business creates value. The international tax system has not kept pace with the changes in business models caused by the spread of digital technology. We still have a tax system that relies on a physical presence in a country in order for that country to tax the profits. A digital business model may require little physical presence and/or create value via user participation.

In this briefing Zoe Andrews considers the proposed UK, EU and OECD solutions to the question how digital businesses should be taxed. 


Dominic Robertson (partner), Zoe Andrews (professional support lawyer)

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