The dawning of digital economy taxation

Multinational technology companies need to be fully aware that global effective tax rates are trending upward — how much remains an open question. Those tax practitioners and international finance executives that prepare now will be in the best position to influence the answer for their own companies.

Countries around the world are beginning to adopt new tax laws or dramatically change the way they interpret existing laws and bilateral tax treaties for an increasingly digitized, globalized economy.

“Companies will need time to make the most tax-effective transition from where they are today to where they will have to be in late 2015 to 2016.”

Channing Flynn, EY Global Technology Industry Tax Leader

From the outset, technology companies have been in the vanguard of globalizing new digital business models that challenge sovereign borders. As such, they have also found themselves in the crosshairs of policymakers and the media as tax issues have risen to new prominence. Pressures on the technology sector to restructure tax planning are correspondingly high.

Download our full report, The dawning of digital economy taxation,to learn more.