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Global Taxation for the Digital Age

15 7 1

AMSTERDAM – The question of how to tax increasingly globalized and digitized businesses is vital to the future health of cross-border trade and investment. Sadly, the current debate is mired in confusion and complexity, and is not helped by populist political responses that demonize digital businesses.

Jan 8, 2019 Joseph S. Nye questions whether the US president is capable of understanding the risks that the US faces in 2019.

A prime example is the European Commission’s proposal, first published in March 2018, to create an EU digital services tax (DST). The measure is aimed mainly at multinational tech giants whose corporate structures allow them to siphon digitally-derived profits to low-tax jurisdictions. But should the DST take effect, it will be Europe’s own startups and digital ecosystems that pay the biggest price.

As a company that operates in a globalized market, we have numerous concerns about the limited vision for the future of business embodied in the European Commission’s proposals. This is why we must oppose the DST idea in its entirety.

The proposed DST, as well as rushed digital taxation efforts by several EU member states, reflects the outdated idea that digital companies are different from traditional businesses. As entire industries........

© Project Syndicate