Digital Services Tax (DST) and Global Trade Conflicts: Balancing Fairness and Trade Relations
Year: 2025
Type: article
Study design: Systematic Review
Abstract: This study examines the impact of the Digital Services Tax (DST) on global trade, tax fairness, and international tax reforms. Using a qualitative approach and a Systematic Literature Review (SLR) method, the research evaluates DST’s role in addressing tax base erosion while highlighting its economic and geopolitical implications. Findings reveal that DST increases government revenues, particularly in developing nations, but also exacerbates trade conflicts and legal uncertainties, deterring Foreign Direct Investment (FDI). While the OECD’s Pillars One and Two offer a multilateral alternative, their implementation remains complex and politically contested. The study concludes that achieving a sustainable digital tax system requires a balanced, cooperative framework to mitigate trade tensions and promote tax fairness.
Authors: Putri Nur Aisyah, Rina Tjandrakirana DP
Institution: Sriwijaya University
Language: English
Topic: Taxation and Legal Issues
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409297240