ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

Taxation on Electronic Services of Multnational Corporation in Digital Economy －A Case Study on Airbnb－

  • Myojeong Kim Mazars Saebit Accounting Corporation
  • Kiho Choi University of Seoul

Asian Tax Journal Vol. 21 No. 1 (2020), pp. 141-163

Abstract

As information and communication technology has been developed, the current tax regime is not applicable to the digital economy and the multinational enterprises shift the taxable income to low－tax jurisdictions. So, OECD proceeds the BEPS project and the new methods on the Action 1 are suggested to impose the consumption and corporate income taxes. The article focuses on the service fees of the multinational company, Airbnb. The purpose of this article is to clarify whether the suggested methods in 2015 and 2019 would be practicable on the multilateral agreement. Currently, South Korea adopted a consumption tax regime on Action 1 as a Korean tax law. However, in case of the corporate tax regimes, it seems to be difficult to set the new one. Therefore, OECD has worked on the alternatives including the unified approach to seek a compromise among the countries. Hopefully, the unsolved issue will be solved in the future and this article is helpful to understand the status of the digital economy.

Keywords

  • Digital economy
  • Digital services
  • BEPS project Action 1
  • Airbnb
  • Service fee

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Asian Tax Journal

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