Taxes in the digital economy and cyberphysical technology

Abstract

Subject. The article discusses the issues relating to taxation development, such as the taxation in the digital economy. Objectives. We summarize materials and recommendations on the method to enhance the taxation in the digital economy. The article analyzes factors influencing international taxation developments in terms of the taxation in the digital economy. Methods. The study is based on methods of analysis, synthesis, and logic research through the creative data approach. Results. The article analyzes the specifics of tax treatment of cryptocurrencies across the globe. We reveal key difficulties in charging taxes on digital (intangible) products in the e-commerce sector (B2C and C2C). The article also suggests improving the taxation in the digital economy, including the protection of users and developers, new projects of smartphone application, and national economies as a whole. The novelty of the article is that it suggests how taxation principles should be refined in the digital economy and the fiscal theory and methodology should be developed for the digital economy. Conclusions and Relevance. The modern tax treatment of cryptocurrency is effectively regulated just by a handful of countries. Therefore, the long-term financial strategy should rely upon identical or more stringent rules than for fiat currency. In the mid run, Russia should establish the new international cooperation on technologies, supporting it with the tax treatment incentivizing technological research and real production.