Digital Services in Africa: Rebalancing Business Income Taxation through Inter-Nation Equity

Key Points

• This research aims to evaluate the effectiveness of digital services taxation in African countries relative to OECD standards.
• Comparison of OECD's Pillar One with domestic Digital Services Taxes in Africa.
• Evaluation of tax principles: fairness, neutrality, simplicity, and administrability.
• African DSTs demonstrate better performance on inter-nation equity and key policy principles than Pillar One.
• The article advocates that developed countries should not hinder DSTs until the subsistence needs of developing nations are met.

Abstract