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Mar 24
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DIGITAL SERVICES TAX: DESIGN, LEGAL NATURE AND PERSPECTIVES

Gordana Ilić Popov, Lidija Živković

10.55836/PiP_23101A
ABSTRACT /

This paper deals with the concept of digital services tax. This fairly novel type of tax is being introduced by numerous jurisdictions around the world in an attempt to address the challenges posed to the taxation of profits by innovative business models which are at the core of multinational enterprises active in the domain of digital economy. The authors firstly analyse the crucial design elements, as well as the functioning of the digital services tax. Based on the results of the conducted analysis they further question the (hybrid) legal nature of such tax. Finally, they discuss the most important shortcomings of the digital services tax and assess the prospects for its persistence on the international tax scene in the light of the potential implementation of the coordinated approach to the taxation of digital economy envisaged by the OECD Pillar One initiative. The analysis of the digital services tax is especially relevant in the context of the continuous development and growth of the ICT sector in Serbia.

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