Taxation of Global Digital Economy

Taxation of the global digital economy refers to how governments collect taxes on businesses that operate primarily online, like tech companies and e-commerce platforms. Many of these companies earn profits in countries where they have no physical presence, resulting in challenges for traditional tax systems. To address this, countries are working together to create new tax rules that ensure these businesses pay their fair share. This includes proposals for taxing based on sales rather than just physical locations, aiming to ensure fairer competition and adequate funding for public services amidst the digital transformation of commerce.