- ATAF members are facing difficulties in taxing highly digitalised businesses in their countries
- Digitalisation allows multinational enterprises to operate in African countries with limited physical presence
- COVID-19 pandemic has accelerated the trend of businesses moving online
- Current international tax rules only allocate taxing rights to countries where non-resident enterprises have physical presence
- Business models like social media platforms and online marketplaces pose a risk to countries’ tax base
- Global tax rules are not suitable for the digitalised economy, and domestic rules are also inadequate
- ATAF published a Policy Brief in June 2020 to assist members in taxing digitalised businesses
- There have been significant developments in the global tax debate on how to tax digitalised businesses since the publication of the 2020 ATAF Policy Brief
- The Policy Brief aims to provide ATAF members with an update on the global tax debate and legislative policy options for taxing digitalised businesses in Africa.
Source: events.ataftax.org
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.
