- Tax revenue impact of Amount A compared to digital service tax (DST) regimes
- DST levying a 3% tax on sales sourced to the country can generate comparable or higher tax revenue than Amount A
- Factors affecting relative tax revenue gains from Amount A and DST include sales sourced to the country, sales from ADS activities, and double tax relief rules
- Unique combination of factors in each jurisdiction leads to differences in revenue size from Amount A and DST
- Jurisdictions without main affiliates of multinational enterprises (MNEs) may collect additional tax revenue from either regime
- Countries hosting parent entities or key affiliates of firms performing ADS services may have to surrender tax revenues to foreign countries under DST
- Compliance burden on MNEs will increase under Amount A regime due to low nexus thresholds and additional tax obligations in multiple jurisdictions.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
