Taxation Challenges in The Digital Economy and Ways to Address Them
Keywords:
Digital Economy, Taxation, Uzbekistan, Tax Reform, E-Commerce, Digital Services Tax, VAT on Digital Services, Tax Policy, Tax Administration, BEPS, Global Minimum Tax, Tax Avoidance, Profit Shifting, International Taxation, Fiscal Policy, Digital Transformation, Economic Growth, IT Sector, Electronic Government, Online PaymentsAbstract
This article explores the challenges of taxation in the digital economy with a specific focus on the Uzbekistan. The rapid growth of digital technologies, e-commerce, and cross-border online services has significantly complicated the functioning of traditional tax systems. The study highlights key issues such as the lack of physical presence of digital companies, difficulties in determining tax jurisdiction, and the risks of base erosion and profit shifting (BEPS). In the context of the Uzbekistan, these challenges are particularly important due to the ongoing digital transformation and economic reforms. The paper also analyzes recent policy measures, including the introduction of VAT on digital services, the expansion of electronic tax administration, and efforts to align national tax regulations with international standards proposed by the OECD. It is concluded that strengthening tax administration, enhancing international cooperation, and adopting advanced digital technologies are essential for improving tax compliance, increasing fiscal revenues, and ensuring sustainable economic development in the Uzbekistan.
