Tax

Addressing the Tax Challenges of the Digital Economy

In series:OECD/G20 Base Erosion and Profit Shifting Projectview more titles

Published on September 16, 2014

Also available in: German, French, Korean, Chinese

book

The spread of the digital economy poses challenges for international taxation. This report sets out an analysis of these tax challenges. It notes that because the digital economy is increasingly becoming the economy itself, it would not be feasible to ring-fence the digital economy from the rest of the economy for tax purposes. The report notes, however, that certain business models and key features of the digital economy may exacerbate BEPS risks. These BEPS risks will be addressed by the work on the other Actions in the BEPS Action Plan, which will take the relevant features of the digital economy into account. The report also analyses a number of broader tax challenges raised by the digital economy, and discusses potential options to address them, noting the need for further work during 2015 to evaluate these broader challenges and potential options.

TABLE OF CONTENTS

Foreword
Abbreviations and acronyms
Executive summary
Introduction to tax challenges of the digital economy
Fundamental principles of taxation
Information and communication technology and its impact on the economy
The digital economy, new business models and key features
Identifying opportunities for BEPS in the digital economy
Tackling BEPS in the digital economy
Broader tax challenges raised by the digital economy
Potential options to address the broader tax challenges raised by the digital economy
Conclusions
Annexes2 chapters available
Prior work on the digital economy
Typical tax planning structures in integrated business models
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