Asia’s advanced and emerging market economies have several locally headquartered tech giants and host foreign companies.
So far, it’s been challenging for many Asian countries to tax tech giants because many are not physically but rather only digitally present in a country.
A new set of agreed global tax reforms will change where these tech giants and other global giants pay taxes, explain experts from the IMF. Investment hubs such as Singapore and Hong Kong SAR could lose up to 0.15% of GDP as a result.
New global reforms will change where tech giants pay taxes in Asia and make the international tax system more robust.
Digitalization —the technology that powers fintech, e-commerce, and online services—enables us to make mobile money transfers, purchase goods and services online, and interact with people across the globe. It has created some of the largest global businesses, such as online platforms and marketplaces connecting producers and consumers across the world.
The agreed changes could spur more comprehensive reforms applied to all companies and to a larger share of profits.
Asia alone has roughly two billion internet users, with considerable room to grow. Asia’s advanced and emerging market economies have several locally headquartered tech giants—including Alibaba, JD.com, Tencent, Rakuten—and host foreign tech giants such as Facebook. A new set of agreed global tax reforms will change where these tech giants and other global giants pay taxes.
Asia has a large share of tech giants
Thus far, it’s been challenging for many Asian countries to tax tech giants especially because many are not…
