Khairunnisa Rahinaningtyas

16/397035/EK/20991
Taxation
International Taxation and Technology

Tending to BEPS is a key need of governments around the world. In 2013, OECD and
G20 nations, cooperating on receiving a 15-point Action intend to address BEPS. It intends to
guarantee that benefits are burdened where monetary exercises producing the benefits are
performed and where esteem is made.

Digital economy arises as a result of a transformation process brought by Information and

Communication Technology (ICT). Digital economy is only one of the arising result of ICT, but
also other factors such as disruption and mindset; new business models and arrangements and
peer to peer economy. Nowadays, the rising of digital economy plays a vital role in the economic
world, rather it has been stated that it is growing into becoming the economy itself. As the
development of digital economy increases rapidly, it has become more difficult to establish a
framework on digital economy from the rest of economy regarding tax purposes.

Inspecting BEPS issues incorporates guaranteeing that center exercises can't fittingly
profit by the special case to perpetual foundation status, the significance of intangibles, the
utilization of information, and the spread of worldwide esteem chains and their effect on
exchange valuing, the conceivable need to adjust Controlled Foreign Company tenets to the
advanced economy, and tending to open doors for charge arranging by empowering usage of the
OECD's rules.

Digital economy and its business models made some key highlights which are applicable
from an expense viewpoint. These highlights incorporate portability; dependence on information;
arrange impacts; spread of multi-sided plans of action; propensity toward restraining
infrastructure or oligopoly; and unpredictability because of lower obstructions to passage into
business sectors and quickly advancing innovation. While computerized economy does not
constitute interesting BEPS issues, a portion of its key highlights incited the dangers of BEPS.
Those dangers tended to as a piece of BEPS would be adjusted to each monetary exercises and
esteem creation.