Digitalization changes the world and the tax world. In the digital world, it is easy for multinationals to reduce their tax burdens beyond an acceptable rate. Attempts to go for special companies or special business situations seem to fail.
It seems difficult or impossible to introduce special rules for internet companies because the differentiation between the “old” world and the “new” world disappears as the whole economy goes digital. Therefore, new rules for worldwide international taxation might be necessary.
The seminar will explain the existing basic concept of international taxation of businesses, the currently discussed ideas and their political and economic background. It will also address matters such us why the current tax system does not work for digital businesses, the introduction of digital services taxes and other unilateral measures, the EU proposals and the OECD approach (the so-called Pillar 1 and Pillar 2: beyond the digital permanent establishment, beyond the arm’s length principle).