Whether nexus rules under EU Commission proposal of Significant digital presence rules is compatible with separate provisions of international tax law
(2021) HARN60 20211Department of Business Law
- Abstract
- Growing digitalisation of the global economy is brining irreversible changes in business models and structure of economic relationships. External factors, such as pandemiс, only facilitate the process of remote participation in economic life and performing economic functions. International system of allocation of taxing rights between resident and source states faces new challenges because of mentioned above global tendencies and events. Permanent establishment concept developed for “brick and mortar” economic business models seems to be outdated and fail task of fair taxation of digital economy. The matter of sufficient and genuine link (“nexus”) between states and taxable matters is necessary. Nexus calls for extraterritorial taxation... (More)
- Growing digitalisation of the global economy is brining irreversible changes in business models and structure of economic relationships. External factors, such as pandemiс, only facilitate the process of remote participation in economic life and performing economic functions. International system of allocation of taxing rights between resident and source states faces new challenges because of mentioned above global tendencies and events. Permanent establishment concept developed for “brick and mortar” economic business models seems to be outdated and fail task of fair taxation of digital economy. The matter of sufficient and genuine link (“nexus”) between states and taxable matters is necessary. Nexus calls for extraterritorial taxation missing in digital service taxes, doing nothing with international tax law.
The EU Commission has developed the proposal for a directive establishing the PE rules on the basis of significant digital presence. The research focuses on an assessment of proposed rules from the perspective of general international law and answers the question whether the proposed PE nexus is in line with requirements of international law.
Further, the present work aims to assess proposed rules from the perspective of economic allegiance theory to find whether the allocation of taxing rights under the proposed PE nexus may be justified. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9049676
- author
- Nemchenko, Kostiantyn LU
- supervisor
- organization
- course
- HARN60 20211
- year
- 2021
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- digital tax, nexus, tax law, international taxation, permanent establishment
- language
- English
- id
- 9049676
- date added to LUP
- 2021-06-08 11:18:46
- date last changed
- 2021-06-08 11:18:46
@misc{9049676, abstract = {{Growing digitalisation of the global economy is brining irreversible changes in business models and structure of economic relationships. External factors, such as pandemiс, only facilitate the process of remote participation in economic life and performing economic functions. International system of allocation of taxing rights between resident and source states faces new challenges because of mentioned above global tendencies and events. Permanent establishment concept developed for “brick and mortar” economic business models seems to be outdated and fail task of fair taxation of digital economy. The matter of sufficient and genuine link (“nexus”) between states and taxable matters is necessary. Nexus calls for extraterritorial taxation missing in digital service taxes, doing nothing with international tax law. The EU Commission has developed the proposal for a directive establishing the PE rules on the basis of significant digital presence. The research focuses on an assessment of proposed rules from the perspective of general international law and answers the question whether the proposed PE nexus is in line with requirements of international law. Further, the present work aims to assess proposed rules from the perspective of economic allegiance theory to find whether the allocation of taxing rights under the proposed PE nexus may be justified.}}, author = {{Nemchenko, Kostiantyn}}, language = {{eng}}, note = {{Student Paper}}, title = {{Whether nexus rules under EU Commission proposal of Significant digital presence rules is compatible with separate provisions of international tax law}}, year = {{2021}}, }