{"id":1196,"date":"2020-12-17T11:16:20","date_gmt":"2020-12-17T10:16:20","guid":{"rendered":"https:\/\/novio.tax\/?p=1196"},"modified":"2024-05-03T11:16:58","modified_gmt":"2024-05-03T09:16:58","slug":"digital-services-tax-emerging-in-africa","status":"publish","type":"post","link":"https:\/\/novio.tax\/nl\/news\/digital-services-tax-emerging-in-africa\/","title":{"rendered":"Belasting op digitale diensten in opkomst in Afrika"},"content":{"rendered":"
Under Action 1 of the BEPS Project, titled \u201cAddressing the Tax Challenges of the Digital Economy\u201d, the OECD has set out to establish a set of international standards to address BEPS in the digital economy. However, given that the work of the OECD\/G20 Inclusive Framework is on-going, some countries have already undertaken unilateral tax measures to tackle the challenges posed by digitalization. Most recently (on 30 September 2020), the African Tax Administration Forum (\u201cATAF\u201d) released its \u201cSuggested Approach to Drafting Digital Services Tax Legislation\u201d<\/a> that proposes a Digital Services Tax (\u201cDST\u201d) of 1% to 3% on gross annual digital services revenue earned by a company or multinational enterprise (MNE) in any country. The key aspects of the proposal, which may impact European MNEs conducting business in Africa, are discussed in this blog. The blog also compares ATAF\u2019s DST to a similar proposed article in the UN Model Tax Convention as well as the OECD\u2019s approach towards addressing the tax challenges raised by digitalisation.<\/p>\n

ATAF\u2019s proposed DST legislation<\/strong><\/p>\n

ATAF\u2019s proposed DST is not in the form of an income tax but a final withholding tax on gross turnover. The following digital services are proposed to be included under the DST legislation:<\/p>\n

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  1. online advertising services,<\/li>\n
  2. data services,<\/li>\n
  3. services delivered through an online marketplace or intermediation platform, and<\/li>\n
  4. digital content services, online gaming services and cloud computer services.<\/li>\n<\/ol>\n

    This list is more or less similar to that proposed by the OECD\/G20 Inclusive Framework in the Pillar I blueprint<\/a>.<\/p>\n

    Further, the DST is proposed to be:<\/p>\n