| Abstract [eng] |
The digital economy has fundamentally changed the way businesses operate and generate revenue. Cross-border transactions, such as the sale of goods and services, have become increasingly common with the proliferation of emerging digital business models. The new activities have created tax problems for tax authorities in taxing these businesses, as the traditional tax system has become difficult to adapt, resulting in large companies paying an unfair share of tax compared to their income. To address these problems, the OECD, together with the European Commission, has embarked on a transformation of the traditional tax system, whether through updating rules and regulations, changes in the allocation of profits or the newly introduced taxes on digital services. Tax transformation is in many cases viewed negatively by businesses due to potential competitive distortions, profit erosion, increased tax liabilities, falling demand and changes in the prices of goods and services. The empirical evidence on tax transformation is extremely limited, mostly based on documentary and statistical generic data analyses, and it is therefore important to identify and provide more empirical evidence on the impact of tax transformation on digital business models. |
