Direct taxation of the digital economy and value creation

The digital economy – due to the corrosive nature of digital technology that is infiltrating even the most traditional businesses – tends to become the economy itself and therefore the search for fair taxation of the digital economy is a search for fair taxation of the economy itself. This monograph identifies, through legislation and case law, the inadequacy of classical tax law to capture incomes of the digital economy that “evaporate”, having no territorial link with a state and therefore, the latter are not subject to taxation. In the search for new tax criteria that make it possible to link the digital economy to a state, an issue the monograph delves into, value creation constitutes the ‘guiding light’. The book discusses the OECD and European Commission’s proposals for direct taxation of the digital economy, in the light of taxing it at the place of value creation. This is because there is international recognition of the importance of value creation from user participation in the digital business, as user contribution contributes to the creation of “brand” ( brand) and the consolidation of a company’s position in the market.