Digital taxation

Digital Taxation: Understanding Current Challenges

The digital revolution has brought countless benefits to our society, but it has also posed significant challenges in terms of taxation. In an era where the digital economy thrives and expands at a rapid pace, the issue of taxing businesses operating in the digital domain has become a crucial topic.

The Challenge of Digital Taxation

Global digital businesses often have complex structures that transcend physical borders, creating challenges for traditional tax regulators. Innovative business models and the intangible nature of digital services make defining taxable profits and determining tax jurisdiction difficult.

Key Issues in Digital Taxation

• Erosion of the tax base: The ability of digital companies to minimize their tax base by exploiting differences between national tax systems.
• Tax fairness: Whether digital companies contribute fairly to infrastructure and public services in the countries where they operate.
• Quest for an appropriate tax framework: Developing an appropriate international tax framework for the digital sector, considering the cross-border nature of these companies.

Faced with these challenges, many jurisdictions are working on developing new tax approaches. Proposals such as taxing digital services and corporate tax reform aim to better align taxation with the digital economy.

A Team of Lawyers Specialized in Digital Taxation

The tax lawyers at the firm advise a significant number of operators in the digital sector on the taxation applicable to their operations each year. To learn more about digital taxation or to discuss our approach, feel free to contact us. We cover all aspects related to digital taxation:

– Taxation of collaborative economy and crowdfunding: crowdfunding, equity crowdfunding, and initial coin offerings,

– Taxation of virtual currencies, the Metaverse, and non-fungible tokens: NFTs and non-fungible tokens,

– Taxation of digital sector companies: digital startups, e-commerce…,

– VAT in the digital economy.