The Tax Challenges of the Digital Economy

In the coming months, the tax department of ACT will be writing weekly articles on the tax challenges of the digital economy.  These weekly short articles (not more than 400 words) will be written in such a way so as to illustrate in a simple way the tax challenges applicable to the digital economy. In […]

Written By ACT Team

On December 1, 2015
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In the coming months, the tax department of ACT will be writing weekly articles on the tax challenges of the digital economy.  These weekly short articles (not more than 400 words) will be written in such a way so as to illustrate in a simple way the tax challenges applicable to the digital economy.

In July 2013, the Organisation for Economic Co-operation and Development (OECD) published a 40 page action plan containing 15 separate action plans with a view of addressing the perceived flaws in the international tax rules that were discussed in the OECD’s report on Base Erosion and Profit Shifting (BEPS) issued in February 2013.  The specific aim of this action plan is to provide countries with domestic and international instruments that will better align rights to tax with economic activity.  Action Plan Number 1 addressed the digital economy and the final report ‘Addressing The Tax Challenges of the Digital Economy’ was released in October 2015.

These articles are the result of extensive research made by the tax team of ACT and will in particular make reference to the OECD’s Action Plan Number 1.  These articles will discuss both the direct and also the indirect tax challenges being faced by the digital economy.  The first four articles will address the following issues:

Article 1 – Introduction to the tax challenges of the digital economy

Article 2 – Main principles of Direct Taxation – Domestic Tax Rules

Article 3 – Main principles of Direct Taxation – Double Tax Treaties

Article 4 – Main principles of Indirect Taxation

We invite individuals, companies, tax and legal practitioners and other individuals and entities who might have an interest in the subject and / or whose profession might be directly or indirectly related to the subject to look for these weekly articles on our website.  These articles will be uploaded on our ‘Latest Articles and Publications’ section of the website.  The first article has already been uploaded on our website.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].