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Professional paper

https://doi.org/10.31785/ijdte.4.1.4

‘The Evolving ‘Thunder’: The Challenges Around Imposing the Digital Tax in Developing African Countries

Lyla Latif orcid id orcid.org/0000-0003-1081-0763 ; University of Nairobi, School of Law, Kenya


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Abstract

This paper addresses the challenges of taxing the digital economy and offers potential solutions towards aligning the digital economy by redefining the tax rules governing traditional businesses. The methodology employed is purely descriptive and explanatory highlighting specific countries and their approach to taxing the digital economy. The literature addressed in the paper focuses on recent government responses in highlighting the problem with digital taxation and identifying the key areas requiring policy recommendations, which the paper then offers to provide. Although several academic works have addressed the challenges of taxing the digital economy, there has been little systematic description on what policy recommendations ought to be made that would provide an effective template for developing African countries to rely on in enacting their own laws. This paper amends this omission.

Keywords

digital economy; taxation; developing countries

Hrčak ID:

250447

URI

https://hrcak.srce.hr/250447

Publication date:

9.1.2021.

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