Impact of OECD/G20 BEPS Project Outcomes on Tax Competition  (Focusing on MNCs Doing Business in Russia)

Milogolov, Nikolai

doi:10.2139/ssrn.2888857

Cited by 1 publication

(3 citation statements)

References 7 publications

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“…Let us calculate the gross revenue of a foreign company generated with the participation of Russian users of its services using formula (1). In order to simplify calculations, we will define this indicator as the total revenue after the introduction of the tax, multiplied by the share of Russian users of the platform.…”

Section: Determine the Change In The Profit Of A Foreign Digital Plat...mentioning

confidence: 99%

“…The existing system of international taxation is based on the fundamental assumptions that (1) transactions between business entities and their clients are of a physical nature, for which (2) it is necessary to have a physical place of activity where income is generated and (3) which is subject to distribution for tax purposes between the country of source of income and the country of residence of the taxpayer. These assumptions do not hold up in a digital economy which is characterized by an unprecedented reliance on intangible assets [1].…”

Section: Introductionmentioning

confidence: 99%

“…The discussion of the problems of taxation of the digital economy and the search for a solution agreed upon by the countries took a long time. Only as part of work on Action 1 of the BEPS plan, 1 the OECD has devoted more than 5 years to them. Many governments are tired of waiting for such a uniform approach and have developed their own taxation rules.…”

Section: Introductionmentioning

confidence: 99%

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Tax on Digital Services: Assessment of the Advantage of the Introduction in Russia

Berger¹,

Полежарова

2023

jour

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The topic of digital services tax (DST), applied in a number of foreign jurisdictions, remains relevant, and there is an active discussion in the scientific community on the advisability of introducing such a tax in Russia. The purpose of the study is to characterize the directions of the impact of such a tax on economic growth for the justification of the expediency of its introduction in Russia. The hypothesis is that the introduction of indirect DST will not lead to the withdrawal of part of the property of foreign digital giants in favor of the Russian budget, since the tax burden will be completely transferred to Russian consumers of these services, which in turn will have a negative impact on the economic growth of the domestic economy. The study of the theoretical foundations of DST and the practice of its application in foreign countries has revealed its inconsistency with the principles of neutrality and non-discrimination of taxation, the complexity of tax administration. Using economic and mathematical tools, a model was developed for transferring the tax burden when introducing DST from a foreign company to Russian clients of the platform and end consumers in Russia. A simulation experiment using Airbnb as an example showed that if a digital tax of 3% is introduced in Russia, Airbnb’s profit indicator is potentially expected to grow (which will be taxed in the Netherlands); decrease in profits of Russian Airbnb clients (Russian hotels); increase in Airbnb’s end-customer costs. Presumably, tolerable scenario is that the full burden of the digital tax will be passed on to domestic taxpayers due to the indirect nature of the digital tax. As a result of the study, the hypothesis about the lack of economic feasibility of introducing indirect DST in Russia was confirmed.

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Section: Determine the Change In The Profit Of A Foreign Digital Plat...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Tax on Digital Services: Assessment of the Advantage of the Introduction in Russia

Berger¹,

Полежарова

2023

jour

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show abstract

Impact of OECD/G20 BEPS Project Outcomes on Tax Competition (Focusing on MNCs Doing Business in Russia)

Cited by 1 publication

References 7 publications

Tax on Digital Services: Assessment of the Advantage of the Introduction in Russia

Tax on Digital Services: Assessment of the Advantage of the Introduction in Russia

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