Why digital tax laws will soon be the new normal

Internet is arguably the most popular channel of communication in today’s modern world. This has led to evolution of the ecommerce industry where most businesses have embraced digital platforms to market and sell their products.

With such a lucrative multi-billion dollar industry, discussions around introducing digital taxes have been rife. Policy experts have been lobbying for introduction of a ‘virtual permanent establishment (PE)’ concept in the current tax laws since most of ecommerce entities lack physical or legal structures in the jurisdictions they operate in.