Digital Tax Advisory

With the rapid digitization of business and the explosive growth of e-commerce, digital tax is a key component of the tax ecosystem in the modern world. The cross-border nature of digital business places particular emphasis on the international tax framework. Jurisdictions around the world are conscious about the technological challenges that could obfuscate and prevent the collection of tax revenues due from overseas transactions. Hence, enforcement of compliance is very much on the radar of tax authorities. For companies, compliance is especially challenging as regulations, like technology itself, keeps constantly evolving.

At MBG Corporate Services, our tax experts help you with digital tax compliance with advice on:

• Implications and impact of BEPS Action Plan 1 (Digital Economy) on the cross-border transactions of an MNE Group operating in the E-commerce sector
• Possible virtual PE exposure for businesses operating online with an e-marketplace model with mostly overseas customers
• Tax exposure of a UAE/GCC entity or its foreign parent under another country’s income tax laws on sourcing of business from the second country through a digital model
• Applicable compliances for digital/ internet tax or equalization levy if any
• Possible tax efficiency structures for digital business models
• Implications of other BEPS Acton Plans on the cross-border transactions of an MNE Group