Renewed Concerns Over Digital Services Taxation as Global Tax Reform Stalls

• Digital services taxes are becoming a concern for businesses as BEPS 2.0 Pillar One progress stalls.
• Governments are reconsidering digital services taxes and other measures due to slow multilateral reform.
• Increased potential for DSTs and expanded nexus rules raises business complexity and costs.
• Tax leaders are preparing for digital tax changes by revisiting governance and data systems.
• The OECD’s BEPS project aimed to eliminate DSTs but has stalled, leading to renewed interest in DSTs.
• The US has issued statements discouraging DSTs, creating a complex situation for countries.
• There is a shift towards transactional tax and trade decisions driven by national interests.

Source: ey.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.

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