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Spain’s Recovery Budget Comes with Tax Hikes

Spanish taxpayers are facing several tax hikes in addition to the two major taxes—a financial transactions tax (FTT) and a digital services tax (DST)—approved by Spain’s upper house less than two weeks ago. The coalition government this week presented the 2021 budget which includes a 53 percent increase in non-financial public spending from last year, […]

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A Framework for the Future: Reforming the UK Tax System

Note: Below is a brief excerpt from our new publication with the Centre for Policy Studies, A Framework for the Future: Reforming the UK Tax System, which is a comprehensive study of Britain’s tax system that identifies key areas for improvement in UK tax policy and provides recommendations that would support long-term growth without negatively impacting government revenues. To […]

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The UN Approach on Digital Taxation

Policymakers across the world are currently enamored by tax policies that target digital companies, and there are many policy efforts projects that are currently running in parallel. First, the OECD has been working on an approach that we learned last week is expected to wrap up by mid-2021. Second, many countries have been moving unilaterally […]

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Pillars, Blueprints, an Impact Assessment, and Construction Delays

Monday, the OECD released blueprints for proposals on changing international tax rules alongside an impact assessment based on the overall design of the proposals. While the blueprints cover proposals both for changing where large multinationals owe corporate tax and designing a global minimum tax, there are still many unanswered questions. The OECD has been working […]

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Spanish Taxpayers to Be Hit by Two Major Taxes in 2021

Spain’s upper house passed two major tax bills today: the financial transaction tax (FTT) and the digital service tax (DST).  Both taxes will go into effect in January 2021, three months after their publication in the Spanish Official Gazette. The FTT is a 0.2 percent tax on the purchase of shares of Spanish companies with […]

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Who will Ultimately Pay the Digital Services Tax in the UK? Amazon Passes the Cost Along to Sellers

In July, the UK’s digital services tax (DST) became law after receiving royal assent. The 2 percent tax applies to revenues from social media platforms, internet search engines, and online marketplaces. When developing tax policy, lawmakers often ignore the incidence of a tax, or who actually pays the tax. Many times, this is different from […]

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Tax Foundation Comments on the Initiation of Section 301 Investigations of Digital Services Taxes

The following comments were submitted to the Office of the United States Trade Representative regarding docket number USTR-2019-0009. Thank you for the opportunity to provide comments on the Section 301 Investigation. These comments summarize the discriminatory nature of Digital Services Taxes (DSTs) which arise from their design. These comments also provide some details on the policies […]

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Digital Tax Deadlock: Where Do We Go from Here?

The growth of the digital economy over the last several decades has raised important questions about how to tax corporations that no longer need a physical presence in a country to turn a profit there. For months, countries in the Organisation for Economic Co-operation and Development (OECD) have been working towards a multilateral solution to this challenge, […]