The Impact of Beps on Digital Economy: an Analysis of Action 1

Preface

Chapter 1: Introduction to the concepts of digital economy and electronic commerce

• I.   Approach to the concept of digital economy and e-commerce
• II.  Digital economy and the emergence of new business models
• III. Administrative challenges in the digital economy

Chapter 2: Tax treaty characterization of income derived from new business models

• I.   OECD perspective: introduction
• II.  Rental payments for hiring space for the use of a computer, a server or a similar device
• III. Royalty payments for the use of copyright or any other similar intangible property
• IV.  Business profits
• V.   Payments for services provided to clients
• VI.  Characterizing cloud computing and 3D printing payments

Chapter 3: OECD/G20 base erosion and profit shifting project: It´s influence in digital economy

• I.  Base erosion and profit shifting projects: It´s incidence in digital economy
  •  A. Introduction
  •  B. Tax planning structures for base erosion and profit shifting: opportunities for BEPS in the digital economy
    •   Eliminating or reducing tax in the market country
    •   Avoiding withholding tax
    •   Eliminating or reducing tax in the intermediate country
  •  C. Restoring taxation of so-called stateless income
• II. The obsolescence of the permanent establishment concept
  •  A. The traditional definition of permanent establishment
  •  B. 2003 changes to the Commentary on Article 5 OECD MC: guidance on the application of the PE definition in e-commerce
  •  C. The Spanish approach on the concept of a PE: the Dell case
  •  D. The artificial avoidance of permanent establishment status: the impact of BEPS Action 7 proposals on modification of Article 5 OECD MC
  •  E. The impact of modification of Article 5 OECD on digital economy: the obsolescence of the permanent establishment concept
• III. A new nexus based on the concept of significant economic presence: the digital permanent establishment
  •  A. Introduction
  •  B. The significant economic presence test: TFDE’s suggestions
    •   The revenue-based factor
    •   Digital factors
    •   User-based factors 
  •  C. Income attribution to the significant economic presence
    •   Suggestions of the TFDE
    •   The new PE nexus as proposed by Hongler & Pistone and Avi-Yonah & Halabi.
  •  D. The new Article 12A for technical services on the UN Model: an alternative to the new PE nexus?
  •  F.  A Common reform of the EU’s corporate tax rules for digital activites: a new nexus based on the concept of significant digital presence
• IV. The introduction of a withholding tax on digital transactions
  •  A. Introduction
  •  B. The need for a clear definition of transactions covered and the intervention of collecting agents
  •  C. Comments on the introduction of a WHT on digital (or all sales) transactions concluded remotely with non-resident companies
  •  D. Introduction of a WHT on digital (or all sales) transactions concluded remotely with non-resident companies vs. new Article 12A for technical services on the UN Model
• V. The introduction of an equalisation levy and other defensive measures introduced by countries
  •  A. Introduction: TFDE’s suggestions
  •  B. Unilateral and defensive measures introduced by countries: a short-term solution
    •   UK Diverted Profits Tax
    •   The Australian Multinational Anti-Avoidance Law (MAAL) and the Diverted Profits
    •   Tax
    •   The Indian Equalisation Tax and the recently proposed new nexus based on a concept of «significant economic presence»
    •   The French tax on online and physical distribution of audio visual content
    •   The Italian initiatives: the voluntary disclosure procedure and the levy on digital transactions (web tax)
  •  C.  The introduction of a Digital Services Tax as an interim measure at EU level
• VI. Next goals: destination-based corporate tax

Bibliography