States Interests Legal Ensuring in the Field of Cross-Border Digital Services Taxation

Abstract

The article continues the series of studies in the field of international economic (tax) law relating to the barriers and prospects of multidimensional action plan BEPS initiated by OECD and G-20 implementation. It’s dedicated to the issue of the states’ economic interest ensuring in the field of digital services taxation of non-residents exporting such kind of services to the business entities and physical persons without paying any direct corporate income tax. Above mentioned issue is considered on the multilateral level initially taking into account the most significant concept and legal drafting within Action 1 «Tax Challenges Arising from Digitalization» of multidimensional action plan BEPS initiated by OECD and G-20. Attention is focused, particularly, on the basic value creation concepts as well as intentions to modify long-standing approaches and to introduce novelties regarding identification of nonresidents-importers’ nexus to the territories of the states under absence of their permanent establishments. Regional level became the context of issue researching, on the one hand, UE institutions legislative initiatives relating to directive drafting aiming at new tax on gross income of digital services on the common market big companies-providers introduction, on the other hand, negative reaction of several member states towards such initiative on behalf of their companies which are digital services leading exports. Special attention has been given to the national legislation level with respect to unilateral actions of the power bodies of France, being one of the primary European integration apologist project, resulted in special law adoption. Its rules introduced new corporate income tax on digital services to be paid both residents and non-residents. Such legislative approach is contrary to the interests of such kind of services leading exporters — multinational corporations from the USA and China creating risks of both symmetric and asymmetric international economic and law countermeasures, particularly, within World Trade Organization implementation.