Australia: Discussion Paper on Interim Digital Tax
The Australian government has published a discussion paper on whether to introduce a new interim digital tax. The digital tax is expected to apply to service providers such as news and information providers (e.g., search engines and digital advertising), digital streaming and sharing services, accommodation platforms and other digital platforms. If the digital tax provisions are implemented, digital businesses could be taxed not only based on the physical location of their assets and employees, but also on the potential value created by the users of the digital businesses or digital networks. Accordingly, nonresident companies would need to review their value chains and evaluate the impact and costs of having a digital presence in Australia. The proposed tax would be in addition to existing indirect tax laws that affect digital businesses.