Legal Analysis of Transnational Digital Service Taxation Issues in the Field of International Tax Law
Mar 17, 2025
About this article
Published Online: Mar 17, 2025
Received: Oct 29, 2024
Accepted: Feb 04, 2025
DOI: https://doi.org/10.2478/amns-2025-0257
Keywords
© 2025 Yuxiang Huang, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
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The legislative status of digital service tax
| Tax class | Direct tax | Indirect tax | Total |
|---|---|---|---|
| legislated | 42 | 104 | 146 |
| Refuse to make public announcements/proposals | 14 | / | 14 |
| Draft legislation/public consultation | 8 | 15 | 23 |
| Wait for global solutions | 11 | 4 | 15 |
| Declare/intend to implement | 9(Including China) | 3 | 12 |
Relevant tax system elements
| Country | Progress of the bill | Tax scope | Income threshold |
|---|---|---|---|
| France | Promulgate (extension until the end of 2020) | The ratio of the “French digital presence” to the corresponding global digital service income is associated with the French tax service income section: Provide a digital interface that enables users to connect with others and interact. The advertising agent based on the number of users. |
Global revenues of more than 750 million euros are worth more than 25 million euros in taxable income related to French user activity. |
| England | Promulgate (April 1, 2020) | From the UK, which belongs to the income of three kinds of words: Social media platform. Search engine. Online market. |
Global revenues are more than 500 million pounds, and it comes from Britain’s revenue of more than 25 million pounds. |
| Austria | Promulgate (January 1, 2020) | Digital service providers provide Austria with the revenue of advertising services. | The turnover of taxpayers’ groups has exceeded the turnover of 750 million euros and digital advertising services more than 25 million euros. |
National digital service tax registration
| Region | Country | Opening time | Collection range | Tax rate | ||
|---|---|---|---|---|---|---|
| Digital service range | Global turnover | Domestic turnover | ||||
| Europe | France | 2019.01 | Digital business advertising and cross-border data flow and other digital transactions | 750 million euros | 25 million euros | 3% |
| Italy | 2020.01 | Directional advertising and digital interface service | 750 million euros | 5.5 million euros | 3% | |
| Austria | 2020.01 | Online advertising | 750 million euros | 25 million euros | 5% | |
| Turkey | 2020.03 | Targeted advertising, social media and digital interface services | 750 million euros | 20 million Turkish lira | 7.5% | |
| England | 2020.04 | Social media, search engines and online marketing services | 500 million sterling | 25 million pounds euro | 2% | |
| Spain | 2020.12 | Online advertising, online intermediary services, sales users, etc. | 750 million euros | 3 million euros | 3% | |
| Czech | 2021.06 | Digital service | 750 million euros | 100 million kronor | 5% | |
| Aisa | India | 2020.04 | E-commerce transactions | 20 million rupees | 20 million rupees | 2% |
| Singapore | 2020.01 | Digital services related transactions | Million new yuan | 100,000 new yuan | 7% | |
| Malaysia | 2020.01 | Including audio and streaming media services | 120,000 dollars | 120,000 dollars | 6% | |
| Thailand | 2021.09 | Electronic service transaction | 1.8 million baht | 1.8 million baht | 7% | |
The registration of the digital service tax
| Region | Country | Opening time | Collection range | Tax rate |
|---|---|---|---|---|
| America | Canada | 2021.07 | Global income is more than $759 million and domestic income of more than $30 million. | 3% |
| Brazil | 2020.01 | Global income is more than $600 million, and revenue in Brazil is divided into three levels, with a different level of 3% and 5% tax. | 1%,3%,5% | |
| Mexico | 2020.05 | Global income is more than $5 billion and domestic income is more than $30 million | 16% | |
| Chile | 2020.06 | Global income is more than $5 billion and domestic income is more than $30 million | 19% | |
| Paraguay | 2021.01 | Global income is more than $5 billion and domestic income is more than $30 million | 10% | |
| Costa Rica | 2020.10 | Global income is more than $5 billion and domestic income is more than $30 million | 13% | |
| Africa | Kenya | 2021.01 | Annual income of more than $5 million | 1.5% |
| Tunis | 2020.01 | Annual income of more than $0.5 million | 3% | |
| Zimbabwe | 2019.01 | Annual assessment of more than $500,000 | 5% |