01 October 2025 How taxation of digital services is again a concern for businesses A renewed focus on digital services taxes (DSTs) and other unilateral measures to tax the digital economy, effectively under a moratorium while governments negotiated key multilateral tax reform details in recent years, is emerging again as a concern for businesses. Pillar One of the OECD’s base erosion and profit shifting (BEPS) project was intended to require participating jurisdictions to abandon DSTs and similar measures but has stalled in the last year. As a result, the DST “standstill” that was agreed among members of the Inclusive Framework on BEPS has expired and those jurisdictions with pre-existing DSTS are collecting significant revenues, while other countries are considering DSTs and other unilateral measures to tax the digital economy. Now, the forthcoming 2025 EY Tax Risk and Controversy survey finds businesses are ranking DSTs as the No. 1 source of future tax risk. Learn more in this EY article. Document ID: 2025-1978 |
