The Taxation of Digital Giants

17 January 2024

The rise of digital business models prompts the adoption of web taxes, aiming to tax gross revenues as a proxy for profit. However, Alessia Sbroiavacca, Fellow at our Italian member think tank, Istituto Bruno Leoni, argues that this approach raises critical concerns.

Taxing gross revenues may overlook actual profitability, burden loss-making firms, and spark tax shifting to consumers. Identification criteria and profit localisation based on user presence face accuracy and fairness challenges, questioning their reliability.

Instead, harmonising a multilateral approach becomes crucial to address these complexities and ensure fairness and consistency in international tax frameworks.

Download PDF The-Taxation-of-Digital-Giants

EPICENTER publications and contributions from our member think tanks are designed to promote the discussion of economic issues and the role of markets in solving economic and social problems. As with all EPICENTER publications, the views expressed here are those of the author and not EPICENTER or its member think tanks (which have no corporate view).

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