Digital Economy

The increasing digitization of society and business has led to a completely different and constantly changing economic landscape.

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The current tax rules are still largely based on the ‘old’ economy in which physical presence in a country was often required for companies to do business locally. With the advent of internet, smartphones and other technological developments, this has completely changed. It is clear that the tax rules need to be adapted to bring them into line with current economic realities.

For companies in the digital economy, but also for traditional multinationals that are increasingly digitizing, it is important that new tax rules are enforceable and do not lead to double taxation. In order to avoid an international patchwork of different tax measures, it is important to find a common solution for the taxation of the digital economy on a global basis.

This topic has therefore long been high on the agenda of international organizations, such as the European Union and the Organisation for Economic Cooperation and Development (OECD). 

In the absence of agreement on a global solution, it is likely that countries, or groups of countries (such as the European Union), will independently introduce new tax measures for the digital economy, creating an international patchwork of different, uncoordinated tax measures that could harm the global economy.

More information?

If you have any questions about developments in the field of the digital economy and what these may mean for your company, please feel free to contact one of our experts. 

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