Tax Challenges of Digitization

Insights from KPMG about the potential impact of proposed reforms on the taxation of the digital economy

Brett Weaver

Brett Weaver

Partner and National Leader, Value Chain Management, KPMG LLP (U.S.)

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The challenge of how to tax the digital economy was identified in the OECD's BEPS initiative as Action 1: Addressing the Tax Challenges of the Digital Economy. While intergovernmental groups, including the OECD, are trying to build a consensus around taxation of the digital economy, some countries are taking unilateral actions, such as imposing digital services taxes. As the digitization tax debate continues, multinational companies will need to stay abreast of both short- and long-term developments to navigate and prepare successfully for the resulting changes to the global tax landscape.

2019 to Be a Pivotal Year

What are the challenges in developing a multilateral solution?

Video Insights

A look at the OECD's proposals: How they compare to prior efforts and more

TaxNewsFlash

Digitalized Economy edition – Alerts from KPMG on recent developments

Initial Impressions of Cloud-computing, Digital-content Transactions (Proposed Regulations)


On August 9, 2019, the U.S. Treasury Department and the IRS released for publication proposed regulations that modify and expand the scope of the rules in Reg. section 1.861-18 for classifying transactions involving computer programs and address the classification of cloud transactions.

Read KPMG's initial impressions here

Taxation of the Digitalized Economy – Developments Summary

Updated as of August 6, 2019 | Provides a general overview of how countries are responding to the tax challenges arising from the digitalized economy

CTOs & the Digital Economy

February 2019 | CTOs concerned that their voices are not being heard

Addressing the Tax Challenges of the Digitalised Economy

March 6, 2019 | Comments from KPMG International on the OECD's Public Consultation Document


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