Whereas the digitalization of the economy can support the development of the country’s domestic tax base and growth of the small and
medium sized businesses by providing them with the opportunity to participate in the global marketplace, the rapid expansion of the digital
economy has created challenges for the global tax regime. It has made it increasingly difficult for the current national, and international tax
systems to tax businesses in a way which supports the public finances. Some countries will see expansion of their tax base while others might
suffer eroding tax base. This paper provides evidence on the tax challenges raised by the digitalization of the economy with a view to gaining a
full understanding of whether any supplemental measures are actually needed to address the taxation challenges of the digital economy using
country specific case studies.