Revamping tax regimes in the digital economy
- Date: 31-May-2020
- Source: Gulf Business
- Sector:Economy
- Country:user-top-picks
Revamping tax regimes in the digital economy
Many countries are looking in the direction of the Organisation for Economic Co-operation and Development (OECD) for coordinating a response.. The OECD is developing proposals to overhaul global tax rules that determine where and how much tax multinationals pay, with a plan to give more taxing rights to countries where multinationals conduct business.. Countries worldwide are introducing new taxes and/ or expanding their current tax regimes in order to tax their digital economies.. Countries impose income tax on businesses that either have a taxable presence in the country or carry out activities there.. Businesses need to assess whether their services qualify as ESS under each domestic VAT legislation..