SALT Trends in Taxing the Digital Economy

State and local jurisdictions have increasingly taken steps to tax the evolving digital economy. Growing budget shortfalls resulting from the coronavirus pandemic will incentivize states to raise revenue through enforcement, liberal interpretation of current provisions, broadening the tax base and imposing new taxes on digital goods and services. This article, co-authored by BDO SALT Managing Director Ilya Lipin, looks at initiatives to tax certain digital activities, such as streaming services, third-party delivery platforms, and digital advertising, as well as the potential challenges to these efforts.

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