Harmonized Taxation of the Digital Economy Remains Elusive: Financial Data about US MNEs Speaks for Itself
- Kuldeep Sharma
- May 29
- 1 min read
The world of international taxation has traditionally been divided between two groups: developed and developing economies. However, digital taxation has disrupted this bifurcation, and now the United States and the rest of the world are competing to protect their respective tax bases.
There is a strong perception that the United States is stalling taxation of the digital economy, as it believes digital taxation arises from “value creation”, whereas, the rest of the world opines that it is taxing the portion of profits generated from “users” of services within respective jurisdictions. This article unravels reasons of challenge by the United States to digital taxation with statistical analysis/ research to assess the revenue impact of taxing top 51 digital and ICT companies worldwide for the years 2015 and 2024. As a result, the research data identifies the quantum of revenue that each of the 22 US-headquartered MNEs would be required to share with overseas jurisdictions when compared with each of the 29 MNEs headquartered outside the United States.
The analysis shows that the United States would stand to lose in revenue irrespective of taxation of the digital economy on a net or gross basis, and leads to many more interesting observations and inferences. To read the article in detail, please access the link below:
Comentarios