Taxation in a Global Digital Economy

1. S. 258Introduction: BEPS and Tax Issues in the Digital Economy

The notion of a digital economy refers to an economy that is based on digital technologies including digital communications networks, computers, software, and other related information technologies. In other words, the term digital economy refers to the convergence of computing and communication technologies through the internet and the resulting flow of information and technology that is stimulating e-commerce and spurring vast organizational changes. The use of information and communication technology (ICT) has generated tremendous changes in how people interact with each other and also on how enterprises are doing their business. More and more businesses have restructured their organizations and embedded information and communication technologies into their supply chains in order to be able to adapt to today’s environment.

In the digital economy, information has been used throughout the economy by enterprises, government, and individuals. Pellefgue explained in his article that the concept of the digital economy is related to two phenomena comprising the increasing use of information technology by all enterprises in all i...