September 27, 2025Open Access

Income Taxation in Global Digital Economy: Challenges and Reform Directions in Light of OECD Proposals

Key Points

Income taxation is increasingly complex in the digital economy due to shifting business models and user data exploitation, complicating tax compliance.
Current challenges include base erosion and tax avoidance by multinational corporations, leading to a need for reform that addresses these issues directly.
The article discusses OECD proposals like the global minimum tax, aiming to create a more equitable taxation landscape across countries.
International cooperation is essential in reform efforts to support developing countries and ensure fair taxation in the evolving digital landscape.

Abstract

The article discusses the main challenges related to the taxation of income generated in the digital economy. Digital business models, based on user data and global operations, undermine the traditional rules of tax nexus, leading to base erosion and tax avoidance by multinational corporations. The author analyzes current legislative approaches, such as unilateral digital services taxes and OECD proposals, including the global minimum tax concept. The article emphasizes that an effective reform requires international cooperation and support for developing countries to ensure a fair and balanced tax system in the digital age.

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