Tax and Technology

S. 2361. Introduction

After the Covid-19 pandemic, the number of home office workers, platform workers and digital nomads has exponentially grown. This trend will continue in the future since digital work makes providing and using services for workers and users easy, and it creates attractive opportunities for entrepreneurs. Even though the international tax community has been making a great effort to overcome taxation issues regarding business income taxation field in recent years, employment income has been neglected.

It might be argued that digital workers are a relatively new and limited phenomenon in the digital economy. However, with that also comes an obligation to rethink current international tax rules concerning digital workers because these rules do not fit their situation. In general, tax rules regarding digital workers negatively affect millions of workers all over the world. Meanwhile, this author believes current nexuses do not allocate taxation rights on employment income between States logically and fairly. Therefore, there is an urgent need to reshape taxation rules on employment income.

This paper investigates such existing issues and proposes potential solutions. In the ...