Tax Revenue Loss in the Digital Economy

DOI

10.2991/978-94-6463-770-0_41How to use a DOI?

Keywords

Digital Economy; Tax Challenges; Base Erosion; Two-Pillar Approach; Digital Services Tax

Abstract

The rapid development of the digital economy poses severe challenges to the traditional tax system. New business models such as cross - border data flows, virtual transactions, and platform economies have made issues like tax source definition, tax jurisdiction, and profit allocation increasingly complex. This paper analyzes the main impacts of the digital economy on tax collection and administration, including tax base erosion, intensified tax competition, and the reduced applicability of the traditional permanent establishment principle. Meanwhile, it explores the reform plans of the international community to address digital economy tax issues, such as the “Two - Pillar” framework (global minimum tax rate and profit reallocation rules) proposed by the OECD, as well as the practices of various countries in digital service taxes (DST). Finally, this paper puts forward suggestions for improving digital economy tax policies, including strengthening international coordination, optimizing tax jurisdiction rules, and promoting digital tax collection and administration, so as to promote tax fairness and sustainable economic development.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Mingcheng Li
PY  - 2025
DA  - 2025/06/26
TI  - Tax Revenue Loss in the Digital Economy
BT  - Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025)
PB  - Atlantis Press
SP  - 361
EP  - 365
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-770-0_41
DO  - 10.2991/978-94-6463-770-0_41
ID  - Li2025
ER  -