A consensus solution for the taxation of the digital economy

Abstract

The taxation of the digital economy is not a new subject but its fast development demands a solid solution for this new way of doing business and generating profit and growth. The solution for this problem should be achieved at a global level, which has turned out to be a complex task. Therefore, the work we aim to do here is to identify and expose the path that has been followed by the international community (in general), and by the European Union, in particular, for the taxation of profits of companies with a significant digital presence and to what extent the lack of an unambiguous solution, within the Union, may condition its own objectives. But achieving a consensual solution comes with a bigger problem: is the unanimity rule established for tax policies, where decisions are taken by a special legislative procedure, suited for the European Union’s goal for a strong and dynamic single market, capable of competing with the world’s leading economies?