One of the reasons for this inaction on the part of our countries lies in maintaining an attractive regime for foreign direct investment.
At the XIII Latin American Regional Meeting of the International Fiscal Association (IFA) held in Quito, Ecuador, in May of this year, one of the central topics discussed was the "Tax Treatment of Digital Platforms in Latin America. Challenges and opportunities". Given the importance of the issue with the increase in e-commerce and the proliferation of unilateral measures in the region, this topic was analyzed at the regional meeting.
The increase in the supply of goods and services through digital providers continues to create opportunities for tax non-compliance, as a result of tax planning and the absence of tax regulations that adapt to digital models. This situation continues to produce debates on the need to rethink the criteria for income attribution in digital business models.
In the case of indirect taxation, the strengthening of the destination principle in the value added tax or similar taxes in our countries was discussed, in order to collect the amount of taxes corresponding to the provision of goods and services marketed on digital platforms. In addition, the different mechanisms for the implementation of fiscal control over payment platforms and the effectiveness of the programs for the registration of non-resident suppliers, among other measures implemented, were discussed.
Also, the perspectives of the Taxation of the Digital Economy, the proposals of the Inclusive Framework of the Base Erosion and Profit Shifting Project (BEPS) of the Organization for Economic Cooperation and Development (OECD), as well as the challenges in the implementation of the pillars of taxation of the digital economy in our countries were addressed.
We are of the opinion that the region will maintain a slow stance with respect to the European Union and other G-20 jurisdictions on the adoption of the recommendations of the Inclusive Framework of the OECD's BEPS Project. However, we have reasonable grounds to believe that fiscal control over the taxation of the digital economy will be strengthened and the connecting factors of the tax systems will be readjusted.
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