This chapter addresses the current developments in the taxation of the digital economy including the current unilateral, multilateral, and EU proposals including objectives, challenges, and... Show moreThis chapter addresses the current developments in the taxation of the digital economy including the current unilateral, multilateral, and EU proposals including objectives, challenges, and problems arising when implementing these proposals. The chapter also provides some elements of analysis regarding the evolution from e-commerce to the digital economy, as well as addresses the concerns regarding the requirement of local presence that may constitute a barrier to trade and investment. The diversity of the proposals reveals that there is no clarity on the best way to deal with highly digitalised business, with the multilateral approaches facing similar scrutiny, especially by developing countries. Therefore, as in trade and investment, multilateral approaches will need to do more to gain legitimacy vis-à-vis developing countries. The chapter concludes with some recommendations regarding the steps that can be taken to address this topic by governments, as well as policymakers at the national, EU, and international levels. Show less
This contribution addresses the current developments in the taxation of the digital economy including the current unilateral, multilateral, and EU proposals including objectives, challenges, and... Show moreThis contribution addresses the current developments in the taxation of the digital economy including the current unilateral, multilateral, and EU proposals including objectives, challenges, and problems arising when implementing these proposals. This contribution also provides some elements of analysis regarding the evolution from e-commerce to the digital economy, as well as addresses the concerns regarding the requirement of local presence that may constitute a barrier to trade and investment. The diversity of the proposals reveals that there is no clarity on the best way to deal with highly digitalised business, with the multilateral approaches facing similar scrutiny especially by developing countries. Therefore, as in trade and investment, multilateral approaches will need to do more to gain legitimacy vis-à-vis developing countries. This contribution concludes with some recommendations regarding the steps that can be taken to address this topic by governments, as well as policymakers at the national, EU, and international levels. Show less
