Discussion paper released on taxation of digital economy

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Oct 02, 2018

On October 2, 2018, the Australian government released a Discussion Paper seeking views on options to move towards a “fairer and more sustainable tax system for the digitalized economy.” The Australian government remains concerned that some very profitable, highly digitalized companies pay very little tax in the countries in which they do business, including Australia.

The paper is very much a discussion paper canvassing the background issues, noting recent developments and asking a number of discussion questions. The paper does not advance a government view.

The key areas addressed by the paper include:

  • User created value
  • Value of intangibles, including marketing intangibles
  • Profit attribution rules
  • Existing nexus rules
  • Digital business or beyond?
  • Interim options

Submissions on the discussion paper are due by November 30, 2018.

Review our summary and the discussion paper on the Australian government's website.

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