The challenges of taxation in the digital economy: analysis of the Ecuadorian tax system

Abstract

The purpose of this research is to evaluate the current state of taxation of the digital economy and project its contribution to the tax system in Ecuador. A methodology of qualitative approach and exploratory scope was used, through a comparative matrix of Latin American countries, their BEPS regulations and an analysis of the effectiveness of the actions taken on taxes on the digital economy. Statistical data was taken from Tax Administrations, the Economic Commission for Latin America and the Caribbean, the Inter-American Center of Tax Administrations and the KPMG Tax News Digital Economy Report. For the projection of fiscal income, the Financial Statements of multinational companies that do not have headquarters in Ecuador were considered and through simple regression the future collection was estimated. The results showed that the projection of digital taxes in Ecuador would be 200.27 million dollars for the period 2022-2025, with 80% corresponding to VAT. In addition, it was revealed that there is a derivative collection not considered as a product of the information provided by digital companies, causing additional potential collection. In the diagnosis of advances in international tax matters in the Region, it is concluded that tax regulations in Latin America respond to the tax challenges of the digital economy on a global scale.