Digital Taxation

Digital taxation refers to the process of taxing revenue generated by digital businesses—such as social media platforms, online marketplaces, or cloud services—based on where their users or customers are located. Traditional tax rules often focus on physical presence, but digital companies can operate globally without a physical storefront, making it challenging to determine where they should pay taxes. Digital taxation aims to ensure fair contributions by these companies to local economies, preventing tax avoidance strategies and adapting regulations to the digital economy’s unique nature. It’s about fairly capturing value created through digital activities across borders.