In recent years, the developing digital age has completely modified the approach of enterprises to how they operate business. Globalisation and the ability to reach consumers through digital platforms has, indeed, changed the way that enterprises are carrying out their business activity. 

As a result, tax authorities acknowledge that the current rules for taxing multinational enterprise with a high scale of digitalisation is obsolete and have instead focused on introducing new principles to ensure that digital economies are paying the correct share of tax. 

The consequence? A number of significant developments on the tax side are occurring around the globe, where the focus has shifted from the localisation of an enterprise to the presence of users. Therefore, users are to be taken into account as important assets for enterprises, capable of driving and changing the taxation approach of various transactions. 

Our thoughts on the changing landscape, including the implications on corporate transactions in the following areas:

  1. new tax approach at global level – OECD Including Framework on BEPS and Digital Service Tax, 
  2. transfer of data as digital asset – qualification of the transaction for tax purposes, and
  3. Re-evaluating assets (even if not recorded in the financial statements for civil and tax purposes),

 are outlined in a detailed article which can be read here.