The Dialogue presents a comprehensive analysis on the pressing challenges of taxing the digital economy, a critical issue faced by governments globally. As digital transformation accelerates, frameworks like Article 12B of the UN Model Taxation Convention aim to ensure fair taxation of automated digital services, including online advertising, cloud computing, and social media platforms.
Our report evaluates Article 12B’s dual taxation approach—gross-based withholding tax and net profit taxation—assessing its practicality against the backdrop of ongoing OECD initiatives like Pillar One and Pillar Two. While Article 12B offers a simplified solution, its adoption remains polarizing, with experts raising key concerns about its long-term impact.
How does this framework compare to existing global proposals? Can it strike the right balance between simplicity and effectiveness? Dive into our detailed study for insights into how India and the global south can navigate the evolving landscape of digital taxation. Download the report to uncover the next steps in this critical policy debate!
