The International Tax Challenges Raised by the Rapid Growth of the Digital Economy
Year: 2024
Type: article
Abstract: The digital era brings new possibilities for innovation and economic expansion. From a tax standpoint, it also creates tools for tax authorities to curb tax evasion. At the same time, shifting business models are placing increasing international pressure on existing tax frameworks. Current tax rules were designed in the early 20th century for traditional businesses and rely on the principle that profits should be taxed where value is generated. In the context of digital activities, however, companies can operate and provide services without any physical presence. The rapid rise of the digital economy has exposed significant shortcomings in international tax rules, which are no longer fit for purpose. One of the goals at the level of the European Union is therefore to adjust Member States’ tax systems so they can effectively address the challenges of digitalization. This article aims to offer an overview of the ongoing discussions and potential reforms of the international tax framework in response to the issues posed by the digital transformation of the economy.
Author: Roxana CIORTIN GANGOȘ
Institution: University of Oradea
Language: English
Topic: Taxation and Legal Issues
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7139458190