Taxation in the digital economy

Abstract

The digital economy is increasingly replacing the everyday economy. The continued rapid pace of
technology development and its use in business presents exciting opportunities for entrepreneurs and
challenges for tax authorities. In the digital economy, traditional correspondences, dependencies, and
proportions inherent in the industrial-market economy are no longer effective. Traditional methods of
regulation in the new economy are no longer effective, especially in the field of taxation. We need new
tax rules that take into account the specifics of the technologies used. The rules should reflect the use
of virtual currencies, digital goods, classification and taxation principles. The purpose of the study is
to identify the main problems in the taxation of the digital economy and ways to solve them based on
foreign experience. The scientific significance of the research is based on the study of the theory and
practice of taxation in the field of digital economy. The practical significance of the research is justified
by the possibility of using the research materials for further assessment and solution of taxation problems
in the digital economy. The research in the article was carried out on the basis of information from
international and public organizations, scientific works of foreign scientists. Such research methods as
analysis, analogy, abstraction and concretization were used.

Key words: digital economy, taxation, cryptocurrency, transfer pricing, the “arm’s length” principle.