Abstract:

With the developments in information and communication technology; multinational companies, which are operating in the digital field, have been able to engage in commercial activities without having any physical presence in countries where they are not resident. With digital transformation, the loss of physical assets is now a major problem in the taxation of these activities. As a result of this, base erosion and profit transfer (BEPS) are on the agenda and it is seen that countries are turning to unilateral measures because of the lack of tax revenues that can be obtained in this area. In this context, the purpose of the study is to examine the form of the digital economy and taxation issues and the evaluation of Turkey’s implementation of the measure. Methodology- The size of the digital economy, and the problems related to its taxation and studies of Turkey's practices for its taxation will be mentioned. Findings- Considering the direction of digital services that crosses the borders of the country, unilateral measures implemented by the countries are insufficient in solving the problem of taxation of the digital economy and the tax and/or taxes to be introduced may cause other problems such as double taxation. Therefore, the need to find a fair, multilateral international solution at the OECD level has come to the forefront in order to develop methods that protect the rights of countries and prevent tax planning and tax avoidance. Conclusion- Addressing this issue at international level and ensuring the necessary consensus is important forining and ensuring equality between companies.

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