Taxation of Digital Economy in OECD and Selected Countries: Implications for Turkey

Abstract

Recently, taxation of the digital economy poses one of the most critical problems of the countries. Together with the globalization process and technological advancements, present tax structure and legal arrangements fail short in the taxation of the digital economy. Many countries, particularly OECD, carry out researches for taxation of the digital economy regarding avoidance of the black economy and comprehension of all activities. This study focuses on the researches done by OECD and selected countries regarding the solution for the problem of taxation of the digital economy. The chosen countries took part in the study by referencing the studies and practices they have done towards the taxation of the digital economy. In many countries, in a tax of this field, variants such as using stoppage at source or implementing digital service burst into prominence. Turkey has also taken the first step in the taxation of the digital economy by stoppage at source and VAT implementation. But, in order to excise this field efficiently, rather than country-based solutions, an international tax regime that will be constituted by OECD is expected.

Keywords

• digital economy
• beps
• digital service tax
• taxation