In a new paper published by South Centre, Managing Director Vladimir Starkov and Consultant Alexis Jin estimate the tax revenues to be gained by a group of 85 developing countries under the Amount A and an alternative stylized DST taxation regime. Their research demonstrates the comparative revenue effects of Amount A and DST taxation regimes largely depend on a) the mix of relevant domestic economic activities at market jurisdictions (i.e., revenues sourced to the country under Amount A and revenues from automated digital services generated in the country), b) design details of the DST regime such as tax rate and the nature of activities to be taxed, and c) relief from double taxation, if any, countries will grant to domestic and foreign taxpayers under DST.
This paper contains analysis relying on sources of information available to private sector researchers and does not involve review of any information individual taxpayers provided to tax authorities.
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