世界经济论坛-数字服务贸易与税收（英）-2021.10-29正式版

DigitalTradeinServicesandTaxationWHITEPAPEROCTOBER2021每日免费获取报告1、每日微信群内分享7+最新重磅报告；2、每日分享当日华尔街日报、金融时报；3、每周分享经济学人4、行研报告均为公开版，权利归原作者所有，起点财经仅分发做内部学习。扫一扫二维码关注公号回复：研究报告加入“起点财经”微信群。。Images:GettyImagesContentsExecutiveSummary34556Introduction1DigitalTradeinServices1.1Theriseoftradeindigitalservices1.2RelevanceofdigitalservicestradeasamodeofsupplyandforMSMEs1.3Growingregulatoryinterest2AChangingTaxLandscape810101011111313152.1Taxconcernsinthecontextofdigitalization2.2Corporateincometax2.3Digitalservicestaxes(DSTs)2.4Value-AddedTax(VAT)/GoodsandServicesTax(GST)3DigitalServicesTaxes:AnOverview3.1Objectives,scopeanddesign3.2Revenueestimatesandadministrativecoststotaxadministrations3.3Incidenceofthetax3.4Impactonbusinesses3.5Effectsontrade,investmentandcompetition4PolicyConsiderations1516171920222324254.1ImprovingthedesignandimplementationofDSTs4.2AlternativeproposalsConclusionContributorsEndnotesDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.Thefindings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.©2021WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.DigitalTradeinServicesandTaxation2ExecutiveSummaryDigitalizationispromptinggovernmentstoreviewtheirtaxationpolicies.Somehaveintroduceddigitalservicestaxes,theeffectsofwhicharenotyetclear.Withtheriseofthedigitaleconomytherehasbeengrowingpolicyinterestfromgovernmentsandinternationalorganizationsonvariousfronts,includingtaxation.DespiteprogresstowardsaconsensusoninternationaltaxreforminthecontextofdigitalizationthroughtheOECD/G20InclusiveFramework,anumberofcountrieshaveproposedandimplementeddigitalservicestaxes(DSTs)onrevenuesfromspecifieddigitalactivities.Itremainstobeseenwhenandtowhatextentthesewillberemovedinspiteofrecenthigh-levelagreementtodoso.understandtheincidenceandimpactofthesemeasuressoastobetterinformpolicydecisions.Thiswhitepaperfirstdiscussestheriseandrelevanceofdigitalservicestradeandcorrespondingregulatoryinterest.AftersummarizingthemaintaxconcernsandinitiativesinthecontextofdigitalizationitsharesinsightsonvariousaspectsofDSTsandtheireffectsbeforeputtingforwardsomeconsiderationsforpolicy-makers.ThispreliminaryinquiryintotheeffectsofDSTsontrade,investmentandcompetitionhighlightstheneedforfurtherresearch,includinginspecificcountryandregionalcontextsaswellasinrelationtovariousbusinessmodelsandcompanies.TheWorldEconomicForumhasconductedinterviewsandasurveywithbusinessesfacingDSTsaswellasdiscussionswithexpertstoDigitalTradeinServicesandTaxation3IntroductionAsgovernmentsconsiderhowtotaxinadigitalizedeconomy,theincidenceandimpactofDSTsmustbebetterunderstood.Theissueofhowtoeffectivelytaxcompaniesandactivitiesinadigitaleconomyhasgainedprominence.GlobaldialogueoncorporateincometaxreformsisunderwaythroughtheOrganisationforEconomicCooperationandDevelopment(OECD)/G20InclusiveFramework,variousjurisdictionsareconsideringandapplyingdigitalservicestaxes(DSTs),andvalue-addedtax/goodsandservicestax(VAT/GST)arebeingrevisedforMeanwhile,informationisscarceontheincidenceandimpactofDSTsonbusinessesandeconomies.ThesearerelevantconsiderationsforgovernmentsexploringDSTs,giventheimportanceofcross-borderdigitalservicestradeanddigitalinnovationinthecontextoftheCOVID-19pandemicandeconomicrecovery.TheWorldEconomicForumhasconductedaseriesofinterviewsandaglobalsurveytounderstandhowCOVID-19hasaffecteddigitaltradeandhowtaxpolicychangesindifferentcountriesaffectbusinessoperationsanddecisions.Surveyinsightsarebasedon219responsescollectedinJuly2021fromcross-bordere-commerceandappliedtodigitalgoodsandservices.1ConsiderableprogresshasbeenmadethroughtheInclusiveFrameworknegotiations,withalandmarkhigh-levelagreementreachedon1businessesofvaryingsize3involvedindigitalsectors4fromaroundtheworld.Allrespondentswerefrom5July20212,whichstatesthatnewinternationalcompaniescurrentlyengagedinbusinessabroad,servingclientsoverseasandassuchpotentiallysubjecttodigitaltaxesastheyprovidedigitalservicesordigitalgoods,sellgoodsorservicesthroughonlinechannelsoroperateadigitalplatform.Surveyinsightsareincludedthroughoutthispaper.taxruleswillbeappliedincoordinationwiththerepealofallnationalDSTs.Implementationistargetedfor2023anditremainstobeseenwhenandtowhatextenttheseunilateralmeasureswillberemoved.DigitalTradeinServicesandTaxation4DigitalTradeinServices1Tradeindigitalserviceshasaccelerated,particularlywithCOVID-19.Whileessentialinkeepingeconomiesrunning,ithasattractedmuchregulatoryinterest.1.1TheriseoftradeindigitalservicesSincetheyear2000andespeciallyafter2011,theexpansionoftradeinserviceshasoutpacedthatthatmorethanhalfofservicestradedcouldbedeliveredthroughdigitalmeans.Exportsin“other8oftradeingoods.volumeandvalueofdigitalservicesspecificallyareatanascentstage,theirtradesurgeisundeniable.Estimatesin2018,priortothepandemic,suggested6Whileeffortstomeasurethecommercialservices”,whichincludeseveraldigitalservicesthataresubjecttoDSTs,haveincreasedsignificantly,constitutingone-thirdofservicesexportsin1990andtwo-thirdsin2020(Figure1).7FIGURE1Othercommercialservicesaregainingrelevanceintradeinservices2020201812%19%66%26%19%54%2000199048%29%23%34%31%35%0%10%20%30%40%50%60%70%80%90%100%TravelTransportOthercommercialservicesSource:WorldBank,WorldDevelopmentIndicators,years1990,2000and2018;WTO-UNCTADestimates,year2020,citedinWTO,WorldTradeStatisticalReview2021.Almostallregionsintheworldhaveexperiencedanincreaseinexportsinthiscategory(Figure2).In2020,exportsofcomputerandrelatedservices,forinstance,sawdouble-digitgrowthinmanyeconomiesacrossvariousregions.TheeconomiesthatregisteredthemostrapidgrowthwereBelize(78%),Japan(62%),Kazakhstan(51%),Myanmar(39%),Portugal(37%),Montenegro(37%),Pakistan(36%),Armenia(34%),Uruguay(30%),andIndonesia(28%),albeitfromlowstartingpointsinsomecases.9DigitalTradeinServicesandTaxation5FIGURE2Growthof“othercommercialservices”exportsbyregion,2017and2018(annualpercentagechange)1412108%Worldgrowthinothercomercialservices8136412121210877777555240MiddleEastNorthAmericaCISAsiaEuropeAfrica-2World-2-4SouthandCentralAmericaandtheCaribbean20172018Source:WTO,WorldTradeStatisticalReview,2019,p.39,basedonWTO-UNCTAD-ITCestimates.1.2RelevanceofdigitalservicestradeasamodeofsupplyandforMSMEsTradeinservicesisconductedthroughfourmodesofsupply.Cross-bordersupply(mode1),includingdigitaltradeinservices,amountedto$3.7trillionin2017andissecondonlytoforeigndirectDuetoCOVID-19,tradeinservicesrequiringphysicalproximity,suchasconstructionservices,andpersonal,culturalandrecreationalservices,fellsteeplyin2020,12whilecomputerservices,financialservices,andinsuranceandpensionservicesgrewin2020by8%,4%and3%,respectively.investmentinservicesorcommercialpresence(mode3)(Figure3).Digitalizationisexpandingtheprovisionofservicesacrossborders,alongwithothermodesofsupply.Cross-bordertransactionsdeliveredoverICTnetworks–internet,voiceordatanetworks–haveincreasedfrom$1,855billionin2008to$2,954billionin2018(1.6times).10Duringthisperiod,developedcountriesaccountedforthreequartersofdigitallydeliverableservicesexports.However,thehighestgrowthwasseenindevelopingcountries,especiallyinAsia.11Someofthemostdigital-intenseservicessuchascomputerandinformationservices,financeandinsurance,aswellaswholesaleandretailtradeexperiencedasurgeincross-bordersupply(overcommercialpresence)evenbeforethepandemic.13Therelevanceofcross-borderdigitallyenabledservicesislikelytokeepgrowinggivenchangesinbusinessoperationsandconsumerbehaviouramidlockdownsandtravelrestrictions.14,15DigitalTradeinServicesandTaxation6FIGURE3Tradeincommercialservicesbymodeofsupply(2017)Mode1:Cross-bordersupplyServicessuppliedfromonecountrytoanother.E.g.businessservices,audiovisualservicesacrossborders27.7%10.4%Mode2:ConsumptionabroadServicessuppliedinonecountrytoaconsumerfromanothercountry.E.g.tourismabroad;studyingabroad2.9%2017Mode3:CommercialpresenceAservicesupplierusescommercialpresenceinanothercountrytosupplyservicesthere.E.g.banksestablishingbranchestoprovidefinancialservicesabroadMode4:PresenceofindividualsinanothercountryServicessuppliedinanothercountrythroughthepresenceofnaturalpersonsthere.E.g.medicalworkerstravellingtoanothercountrytoprovideservicesthere;intra-corporatetransferees58.9%Source:WTO,WorldTradeReport2019:TheFutureofServicesTrade,2019.Note:Worldtradeiscalculatedastheaverageofworldexportsandworldimports.WithCOVID-19travelrisksandrestrictions,tradeinvolvingconsumptionabroad(mode2)andworkermovement(mode4)arelikelytosufferintheshort-andmid-term.Forinstance,someinstitutionsofhighereducationarefacingapotentialdropof50to75%ininternationalstudentenrolment.16Further,manystudentsaretakingonlinecoursesofferedbyuniversitiesincountriesotherthantheircountryofresidence(mode1)insteadoftravellingabroadtostudy(mode2).Businessandprofessionalservicesaretransitioningfromface-to-face(mode4)tovirtualdelivery(mode1).Thetransitiontoelectronicdeliverywilldependonacountry’sICTinfrastructureanddigitalskills,aswellasonthenatureoftheservice.moreeasilywithouthavingtosetupacommercialpresencethere.MSMEstendtospecializeinservicesasthesearelesscapitalintensivethanmanufacturingtasks.Onaverage,MSMEsengagedintheservicessectorstartexportingwithinfouryears,whilethoseinmanufacturingstartwithinsixyears.17Knowledge-intensiveservices,suchasadvertising,marketresearchandprofessionalservicesareparticularlyrelevant.18DigitalizationiskeytofacilitatingMSMEparticipationintheinternationalmarket,withdigitalplatformsreducingstructuraldisadvantagesandallowingthemtoreachscalewithoutmass.19Yet,theForumsurveyresultssuggestmostdigitalcompaniesstillhavecommercialpresenceinsomeoralltheforeignmarketstheyserve.20Ofthese,welloverhalfdeclaretheyarepresentinforeignmarketstobeclosertoconsumers,tocomplywithdatalocalizationrequirements,fortaxDigitallyenabledservicesmaketrademoreinclusive.Sincetheycanbeprovidedacrossborders,micro,small-andmedium-sizedenterprises(MSMEs)cantapintoforeignmarketsoptimizationpurposesand/ortoaccesstalent.DigitalTradeinServicesandTaxation7FIGURE4CommercialpresenceinforeignmarketsandreasonforestablishmentProximitytoconsumers63%63%Compliancewithdatalocalizationrequirementsorotherdataregulations19%Taxplanning/optimizationAccesstotalent/workers59%55%26%57%Requiredbylawtobeestablishedinthecountrytoprovideservices50%Yes,inallmarketsservedProximitytogovernmentanddecision-makingforums37%Yes,insomemarketsservedNo,weconductcross-borderbusinessfromheadquartersonlyOther2%0%10%20%30%40%50%60%70%Source:WorldEconomicForum,DigitalServicesTradeandTaxationBusinessSurvey,2021,“Doyouhaveacommercialpresence/aphysicalofficeinthemarketsyouserve?”;and“Ifyoudohaveacommercialpresenceinsome/allthemarketsyouserve,whatisthereasonforestablishment?”Resultsshowthatsome19%ofrespondentcompaniesdonothaveacommercialpresenceinforeignmarkets.Ofthese,76%havefewerthan49employees,highlightingtherelevanceofcross-bordersupply(mode1)forMSMEs.Conversely,52%ofthosereportingacommercialpresenceinallmarketstheyservehavemorethan250employees.1.3GrowingregulatoryinterestDigitalizationhasraisedvariouseconomicpolicychallenges.Governmentshaveenactedandupdatedregulationcoveringdataflowsanddatalocalization,licensing,nationalsecurity,privacy,cybersecurity,competitionandtaxation.TheDigitalPolicyAlertdatabaserecordstheintroductionormodificationofover650policiesorregulationsinG20countriesaffectingdigitalcommercebetweenJanuary2020andAugust2021.21Surveyrespondentsidentifieddatagovernanceanddigitaltaxationmeasuresastoppolicyconcernsfordigitaltrade(Figure5).Similarly,ina2019pollbyPwC,44%oflargecompaniesrankedtaxesondigitalservicesasoneofthetopthreepoliciesthataffecttheirbusinessastheyconductcross-borderservicedelivery.22DigitalTradeinServicesandTaxation8FIGURE5ToppolicyconcernsfordigitaltradeDatagovernance(e.g.restrictionstodataflowsacrossborders,datalocalizationrequirements)35%Digitaltaxation32%RegistrationandlicensingCompetitionlawandregulation28%28%Bordermeasures(i.e.measuresonimports/exports)ForeignDirectInvestmentrestrictionsor26%requirements(includingrequirementstohavephysicalpresenceinthemarkettodobusiness)24%Contentandintellectualproperty20%Limitationonphysicalpresenceofemployeesinforeignmarket18%MinimumservicerequirementsPublicprocurement17%16%Industrialpolicy(includingsubsidies)Otheroperatingconditions16%12%0%5%10%15%20%25%30%35%Source:WorldEconomicForum,DigitalServicesTradeandTaxationBusinessSurvey,2021,“Whatareyourtopthreedigitalpolicyconcerns/barrierswhenservingforeignmarkets?”Domesticregulationscanaffectinternationaltradeandconstitutedefactobarrierstotrade,evenwherenotspecificallytargetingforeigncompanies.23Forinstance,requirementsrelatingtolegalpresence,datastorage,registrationortaxidentificationintheforeignmarketcanerodetheadvantagesofsupplyingservicesremotelycrossborder.Smallerplayersinparticulararelessabletomeettheseadditionalrequirementsandcosts.AccordingtotheOECD,fixedcostsassociatedwithmeetingforeignlawsandregulationscanrepresentupto50%oftotalexportrevenueinthefirstyearthatabusinessstartsexporting.ThisismoreofaproblemforMSMEsastheycannotaffordtemporarylosses.Modestreductionsinservicestraderestrictionscanlowerexportcostsforthesmallestcompaniesaround7.5%morethanforlargerones.24DigitalTradeinServicesandTaxation9AChangingTaxLandscape2Digitalservicestaxesareoneamongvarioustaxresponsestothedigitalizationoftheeconomy.2.1TaxconcernsinthecontextofdigitalizationGovernmentshaveexpressedvarioustaxpolicyconcernsinthecontextofdigitalization,evenbeforethepandemic.Theseincludegovernmentrevenuelossesandtheunlevelplayingfieldbetweendigitalandbrick-and-mortarbusinessescreatedthrough:––Theincreasingvolumeofe-commerceparcelsthatareexemptfromconsumptiontaxesThedigitalizationofgoodsandservicesthatarehardertocapturethroughexistingtaxrules–Theabilityofcompaniestoengageineconomicactivitiesinajurisdictionwithoutestablishingaphysicalpresencethere,whichhasbeenatraditionalrequirementforcreatinganexusandthusbeingsubjecttocorporateincometaxInthiscontext,thetaxpolicylandscapehasseensignificantchanges.2.2CorporateincometaxOn1July2021,over130countriesreachedahigh-levelagreementonreforminginternationalcorporatetaxrulesinthecontextofdigitalizationthroughtheOECD/G20InclusiveFrameworkonBaseErosionandProfitShifting(BEPS).25ThisstatementsetsouttheagreedcomponentsofPillar1andPillar2(seebelow)andanticipatesthatoutstandingissueswillberesolvedandastrategyforimplementationdevelopedinOctober2021.Theplanwillcovermodellegislation,guidanceandamultilateraltreatytobedevelopedin2022implementedin2023.26largestandmostprofitablemultinationals(i.e.withglobalturnoverabove€20billionandprofitabilityabove10%).TheOECDestimatesthattaxingrightsonmorethan$100billionofprofitwillbereallocatedtomarketjurisdictions(whereusersandcustomersarelocated)eachyear.27PillarTwo:PillarTwoaimstolimittaxcompetitionamongcountriestosomedegreebyintroducingaglobalminimumeffectivecorporatetaxof15%throughrulesallowingothercountriestochargeatop-uptaxwhereprofitsaretaxedatlessthantheminimumelsewhere.Thisisestimatedtobringinanadditional$150billionintaxrevenuesannually.28PillarOne:PillarOneaimstoreallocatetaxingrightsamongcountrieswithrespecttotheprofitsoftheBOX1DigitalPermanentEstablishmentRulesSomecountrieshaveintroducedorconsidereddigitalpermanentestablishmentrulestoensurethatcompaniesengagingintheeconomyremotely,withoutphysicalpresence,areneverthelessdeemedtohaveapermanentestablishmentinthecountryforthepurposeofcorporateincometaxliability.Forinstance:withIsraelicustomers,highuseofservicesbyIsraelicustomers,websiteadaptationstoIsraelicustomers(language,currency),highvolumeofwebtrafficfromIsrael,etc.29–Indonesiarequiresforeignsellersandoperatorsofe-commerceplatformstoappointalocalrepresentativeinthecountrytopayandreporttaxes,includingcorporateincometaxonthebasisofasignificanteconomicpresenceandanelectronictransactiontax(notineffect)–AforeignsuppliermaybedeemedbytheIsraeliTaxAuthoritytohave“significantdigitalpresence”inIsraelbasedonthenumberofcontractsDigitalTradeinServicesandTaxation10onsaleswherethesignificanteconomicpresenceconceptcannotbeappliedbecauseofataxtreaty.30isconsideredtobeaSEPifanon-residentexceedsarevenuethresholdofINR20million($280,000)inaggregatesalestoIndianresidentsorhasmorethan300,000Indianusers.31–TheIndianGovernmentintroducedtaxprovisionsrelatedtosignificanteconomicpresence(SEP)in2018tocreatea“businessconnection”fornon-residentsinthecountry.InMay2021,anotificationclarifiedthatthere–In2018,Slovakiaexpandedthedefinitionofpermanentestablishmenttoincludeprovisionofrecurringonlineintermediationservicesfortransportandaccommodation.32Separately,theUNCommitteeofExpertsonInternationalCooperationinTaxMattershasdraftedanewarticlewhichhasbeenintroducedintotheUNModelTaxConventionthatcountriesmayuseasabasisfornegotiatingbilateraltaxtreaties.Article12Bon“IncomefromAutomatedDigitalServices”allowsthejurisdictioninwhichtheincomearisestotaxthatincome.Ifthebeneficialowneroftheincomeisaresidentofanotherstatethatispartytothebilateraltaxtreaty,themodelprovisionproposesthatamaximumrateoftaxapply.Therateoftaxisdecidedduringthenegotiationofthetreaty.Theprovisiondoesnotapplytoincomeconnectedwithapermanentestablishmentorfixedbaseinthecountryinwhichtheincomearises.332.3Digitalservicestaxes(DSTs)26countriesWhileamultilateralsolutionwasbeingnegotiatedthroughtheOECD/G20InclusiveFramework,somecountriesenacteddomestictaxmeasures.AsofAugust2021,26countrieshaveenacteddirecttaxlegislation(intheformofDSTs,withholdingtaxesortheintroductionofdigitalpermanentestablishmentrules)and15othershavelawspending.34Digitalservicestaxesaretypicallynotcoveredbytaxtreatiesastheyarenottaxesoncorporateincome.Theyareconsideredbysometobeadeparturefromestablishedinternationaltaxprinciplesastheytaxgrossrevenues,regardlessofwhetherprofitsarebeingmade,andresultincompaniespayingtaxesintheirexportdestinationbecausethatiswhereconsumersarelocatedandwheretheservicesareconsumed.haveenactedtaxlegislationintheformofDSTs,withholdingtaxesordigitalpermanentestablishmentrules.The1July2021high-levelagreementstatesthatthefinalsolutionwillensurethatnewinternationaltaxrulesareappliedasallDSTsandothersimilarmeasuresareremoved.35Memberswillneedtoagreeonadefinitionofthemeasurestheywilleventuallyremove.Australia,ChileandGermanyhavewithdrawnpublicannouncementsorproposals,36butitremainstobeseenwhenandtowhatextentDSTswillbecompletelyremoved,particularlyiftheycoverawidersetofcompaniesthanPillarOne.2.4Value-AddedTax(VAT)/GoodsandServicesTax(GST)Consumptiontaxesareleviedonthepurchaseofgoodsandservicesateachstageofproductionanddistribution(inthecaseofVAT)oratfinalsale(inthecaseofGST).Thesearebornebythefinalconsumeraspartoftheproductpricepaid,makingthem“indirecttaxes”.Inthecaseoftradedgoods,exportsareexemptfromVATandimportsarechargeddomesticVATinthebuyer’sjurisdiction.Inthecaseofservicessuppliedacrossborders,theplaceoftaxationforVATcouldbebasedontheplacewheretheserviceisperformedorthelocationoftheseller,thebuyerorthetangiblepropertyrelatedtotheservice.TheOECD’sInternationalVAT/GSTGuidelinesrecommendusingthelocationofthebuyer.37ApplyingVAT/GSTtoe-commerceGovernmentsareupdatingVAT/GSTforinternationale-commerce.Countrieshavetypicallyexemptedsmall-valuegoodsimportsfromVAT/GSTbecauseofthecostofcollectingtheseattheborder.Ademinimisthresholdindicatesthevalueabovewhichanimportedgoodwillincurcustomsandtaxcharges,includingVAT.However,e-commercehasresultedingrowingvolumesoflow-valueimports,raisinggovernmentalconcernaboutlostrevenuesandanunfairadvantageforforeignsellers.Australia,forexample,hasintroducedasystemthatrequiresforeignsellersthatexceedA$75,000insalesayeartoAustralianbuyerstoregisterthemselvesDigitalTradeinServicesandTaxation11andremitGST.38Digitalplatformsarebeingexpectedinsomecasestocollectthesetaxes.39keepingfunctionsandaredeemedsuppliersinsomecases.41TheEUupdateditsVATrulesfrom1July2021toincreaserevenues,combatfraudandleveltheplayingfieldbetweenforeignandEUsellersandbetweenonlineandtraditionalsellers.40Anewone-stopshopallowsonlinesellerstoregisterfor,declareandpayVATondistancesalesofgoodsandservicesacrossallmemberstates.Onlineplatformsaretaskedwithrecord-ApplyingVAT/GSTtodigitalgoodsandservicesGovernmentsarealsoexpandingVAT/GSTtoincludedigitalgoodsandservicesineffortstoaccordphysicalanddigitalbusinesses,aswellasnationalandforeignsellers,equaltreatment.Foreignsellersneedtoregister,filereturnsandcollectandremitthesetaxestothegovernmentsofcountrieswherebuyersarelocated.DigitalTradeinServicesandTaxation12DigitalServicesTaxes:AnOverview3DSTsvaryacrosscountries,andtheirincidenceandimpactsareimportantforpolicymakerstoconsider.3.1Objectives,scopeanddesignDSTsaretaxesoncertainrevenuestreamsofdigitalcompanies.42Ingeneral,theyareleviedondigitalservicesusedinacountry,regardlessoftheirdomesticorforeignorigin.Overthelastfiveorsoyears,DSTshavebeeninitiatedandimplementedbyvariouscountries,andevenbyafewstatesintheUS.43ArecentstudysuggeststhattheimpositionofDSTsinsomejurisdictionscorrelateswithadeterioratingtradeindigitalservicesperformanceinpreviousyears.44ObjectivesStatedpolicyobjectiveshaveincludedensuringthevaluethatbusinessesderivefromuserparticipationistakenintoaccountininternationaltaxrulesandthatlargemultinationalsproportionallycontributetopublicservices45;preventingtheerosionoftaxbases,preservingsocialfairnessandensuringalevelplayingfieldforallbusinesses46;aswellasenablingeconomicrecoveryfromCOVID-1947.ScopeDSTsvaryThescopeofDSTsvariesintermsofthetypesofrevenue-generatingactivitiestargeted,howtodeterminewhethertherevenueissourcedlocally,minimumrevenuethresholds(localandglobal),whetherthetaxappliesonlytoforeignprovidersandsectoralcarve-outs.ManyDSTstargetonlineadvertisingandmarketingactivities.Theshareofdigitaladvertisinginglobaladvertisingrevenuehasgrownfrom15%in2010to38%in2017.Meanwhile,theamountspentonnewspaperadvertisingintheUSfellfrom$65.8billionin2000to$23.6billionin2014.50intermsofthetypesofactivitiestargeted,minimumrevenuethresholds,applicabilitytodomesticprovidersandsectoralForinstance,France’sDSTtaxesrevenuesfrom1)theprovisionofadigitalinterfaceand2)targetedonlineadvertising.IntheUK,theDSTcoversrevenuesfromprovidingsearchengines,socialmediaservicesandonlinemarketplacestousersintheUK.Minimumglobalrevenuethresholdsareoftensettoensurethatcompaniestaxedareofacertainscale.ThesedifferacrosscountriesandevenwithintheEU.WhilethemajorityofEUcountrieshaveaglobalrevenuethresholdof€750million($879million),thethresholdinHungaryisHUF100million($332,000).51Domesticrevenuethresholds,settoensurethatcompanieswithinscopehaveasignificantdigitalfootprintinthecountry,varyfrom€3million($3.48million)inSpainto€25million($29million)inAustriaandFranceand£25million($34million)intheUK.