Tax Challenges Arising from the Digitalisation of the Economy: The Development of the OECD Project and Possible Implementation in Russia
The digitalisation of the economy has created a number of complex problems in the area of taxation. A majority of these problems relate to the issue of the distribution of taxing rights between states in the context of taxing income received as a result of crossborder activities. This article discus...
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| Format: | Article |
| Language: | English |
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Publshing House V.Ема
2022-11-01
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| Series: | BRICS Law Journal |
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| Online Access: | https://www.bricslawjournal.com/jour/article/view/709 |
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| author | K. Ponomareva |
| author_facet | K. Ponomareva |
| author_sort | K. Ponomareva |
| collection | DOAJ |
| description | The digitalisation of the economy has created a number of complex problems in the area of taxation. A majority of these problems relate to the issue of the distribution of taxing rights between states in the context of taxing income received as a result of crossborder activities. This article discusses the initiatives of the Organisation for Economic Cooperation and Development (OECD) regarding the taxation of international groups of companies in the era of the digital economy. It considers methodological approaches to taxation of the digital economy and highlights the features of the digitalisation of the economy that play an important role in tax policy. The study undertaken is based on a comparative legal method that allows for the examination of similar legal problems found in legislation and international treaties, as well as the identification of optimal ways to solve them. The following main problem with taxation of the digital economy is highlighted: tax systems laid down in the 1920s traditionally take into account the principles of the source of income and residency. In the new world of globalization and the digital economy, these principles have become significant obstacles to international trade. It is on this ground that the issues of the new nexus as well as the new model of allocation of taxing rights should be established. The article provides an analysis of the OECD’s two-pillar approach to these issues. Pillar 1 deals with the reallocation of profits of multinational enterprises to market jurisdictions. Pillar 2 deals with the issue of a global minimum tax. Additionally, the article discusses the various ways in which the new OECD concept could potentially be implemented in Russia. |
| format | Article |
| id | doaj-art-7f4c7b73da53474288fc44fe34e5dffc |
| institution | Kabale University |
| issn | 2409-9058 2412-2343 |
| language | English |
| publishDate | 2022-11-01 |
| publisher | Publshing House V.Ема |
| record_format | Article |
| series | BRICS Law Journal |
| spelling | doaj-art-7f4c7b73da53474288fc44fe34e5dffc2025-08-20T03:40:06ZengPublshing House V.ЕмаBRICS Law Journal2409-90582412-23432022-11-0194416310.21684/2412-2343-2022-9-4-41-63244Tax Challenges Arising from the Digitalisation of the Economy: The Development of the OECD Project and Possible Implementation in RussiaK. Ponomareva0Financial Research Institute under the Ministry of Finance of the Russian FederationThe digitalisation of the economy has created a number of complex problems in the area of taxation. A majority of these problems relate to the issue of the distribution of taxing rights between states in the context of taxing income received as a result of crossborder activities. This article discusses the initiatives of the Organisation for Economic Cooperation and Development (OECD) regarding the taxation of international groups of companies in the era of the digital economy. It considers methodological approaches to taxation of the digital economy and highlights the features of the digitalisation of the economy that play an important role in tax policy. The study undertaken is based on a comparative legal method that allows for the examination of similar legal problems found in legislation and international treaties, as well as the identification of optimal ways to solve them. The following main problem with taxation of the digital economy is highlighted: tax systems laid down in the 1920s traditionally take into account the principles of the source of income and residency. In the new world of globalization and the digital economy, these principles have become significant obstacles to international trade. It is on this ground that the issues of the new nexus as well as the new model of allocation of taxing rights should be established. The article provides an analysis of the OECD’s two-pillar approach to these issues. Pillar 1 deals with the reallocation of profits of multinational enterprises to market jurisdictions. Pillar 2 deals with the issue of a global minimum tax. Additionally, the article discusses the various ways in which the new OECD concept could potentially be implemented in Russia.https://www.bricslawjournal.com/jour/article/view/709tax lawtaxation of the digital economyoecdbeps action planeuropean uniondigital services taxtax administrationcorporate taxationpermanent establishment |
| spellingShingle | K. Ponomareva Tax Challenges Arising from the Digitalisation of the Economy: The Development of the OECD Project and Possible Implementation in Russia BRICS Law Journal tax law taxation of the digital economy oecd beps action plan european union digital services tax tax administration corporate taxation permanent establishment |
| title | Tax Challenges Arising from the Digitalisation of the Economy: The Development of the OECD Project and Possible Implementation in Russia |
| title_full | Tax Challenges Arising from the Digitalisation of the Economy: The Development of the OECD Project and Possible Implementation in Russia |
| title_fullStr | Tax Challenges Arising from the Digitalisation of the Economy: The Development of the OECD Project and Possible Implementation in Russia |
| title_full_unstemmed | Tax Challenges Arising from the Digitalisation of the Economy: The Development of the OECD Project and Possible Implementation in Russia |
| title_short | Tax Challenges Arising from the Digitalisation of the Economy: The Development of the OECD Project and Possible Implementation in Russia |
| title_sort | tax challenges arising from the digitalisation of the economy the development of the oecd project and possible implementation in russia |
| topic | tax law taxation of the digital economy oecd beps action plan european union digital services tax tax administration corporate taxation permanent establishment |
| url | https://www.bricslawjournal.com/jour/article/view/709 |
| work_keys_str_mv | AT kponomareva taxchallengesarisingfromthedigitalisationoftheeconomythedevelopmentoftheoecdprojectandpossibleimplementationinrussia |