Abstract
This open-access edited volume, Taxation in the Digital Era, provides a comprehensive and multidisciplinary analysis of the profound challenges that digitalization poses to established national and international tax systems. The rapid rise of intangible assets, mobile capital, and remote work has strained traditional tax principles—particularly the concepts of physical presence and source for taxing corporate profits and labor income. The book is structured to examine these issues from three interconnected perspectives: economic, legal, and policy. Economically, it explores how new business models, such as platform economies and data monetization, create value that escapes conventional taxation, leading to corporate tax avoidance and international competition. Legally, the volume analyzes the limitations of the current international tax framework, particularly the struggle of the OECD's Base Erosion and Profit Shifting (BEPS) project and the rise of digital services taxes (DSTs) as unilateral measures. The policy sections delve into potential solutions, including the OECD's Two-Pillar Solution (Pillar One and Pillar Two), but also explore national-level reforms related to VAT/GST, labor income, and environmental taxation. A key theme is the need for tax systems to become more adaptive and resilient, requiring significant international cooperation to ensure a fair and efficient allocation of taxing rights in a world increasingly defined by digital transactions.
Keywords. Digital Taxation; Base Erosion and Profit Shifting (BEPS); Pillar One, Pillar Two; Tax Competition; International Tax Law Reform.
JEL. D47; F23; H25; H87; K34.
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