Digital Taxation around the World by Cristina Enache published by Tax Foundation (4/2024).
The digitalization of the economy has been a key focus of tax debates in recent years. Political de bates have focused on the differences between taxing physical business operations and virtual op erations. These debates have intersected with multiple layers of tax policy, including consumption and corporate tax policies. Novel policies have also been developed, including equalization levies and digital services taxes alongside the more common use of gross-based withholding taxes targeted at digital services.
However, in some cases, political expediency has outpaced consistent policy designs in line with sound principles of tax policy. As policymakers continue to evaluate the options to tax digital busi nesses, they should avoid creating new distortive tax policies driven by political agendas.
This paper reviews a multitude of digital tax policies around the world with a focus on Organisation for Economic Co-operation and Development (OECD) countries and points out the various flaws and benefits associated with the wide set of proposals.
