Tax and Technology

1. Introduction

Nowadays, almost everyone has access to a phone, tablet, or computer connected to the internet. With those devices, we can pay for a membership to watch movies, for example, when subscribed to a cinema rental in the neighbourhood. Nowadays, can order a driver pick up. Can order and haver our favourite food delivered via an app rather than physically visiting the restaurant or snack bar. The main difference between the pre-digital era and today is that today people are not restricted to dealing in the nearest location. This has caused that more and more companies can deliver goods and services in other countries and territories without having physical presence in those countries. This has caused that with the current requirement of physical presence of the Permanent Establishment (PE) according to article 5 of the OECD Model the after mentioned transactions will not be taxed accordingly in the country in which the goods are placed or the services.

S. 52The main research question that this thesis will focus on is whether the solutions of Pillar One or Digital Service Tax (DST) sufficiently complement the PE concept. Do we still need to modify the PE concept, or will it work ...