- The Organisation for Economic Cooperation and Development (‘OECD’) notes that; ‘it is not possible to ring-fence the digital economy and tax it separately since the entire economy is digitalising’. A number of challenges exist in taxing the digital economy in Africa and globally.
- Digitalization raises series of broader tax challenges, including; “nexus, data and characterization”.
- The global challenges relates to, among others, the question of how taxing rights on income generated from cross-border activities in the digital age should be allocated among jurisdictions.
In this upcoming discussion we will look at:
- Whether the challenges facing Africa are similar to challenges facing US, Europe, China etc. in taxing the digital economy?
- What are the peculiar challenges for Africa in taxing the digital economy?
- Most African countries are importers of the digital solutions and most of the exporters do not have registered presence in African countries. How does that impact any tax measures taken by African countries?
- What challenges will African countries have in implementing and enforcing unilateral digital tax rules e.g. Digital Service Tax in Kenya?
We will also consider solutions available for African countries in taxing the digital economy.
 OECD ‘OECD/G20 Inclusive Framework on BEPS: Progress Report July 2019-July 2020’ available at https://www.oecd.org/tax/beps/oecd-g20-inclusive-framework-on-beps-progress-report-july-2019-july-2020.htm, accessed on 24 August.2020.page 1 para 1.