ATAF to help govts tax digital economy

This has created new challenges for the tax policy makers and administrators as most of their tax rules still rely on the brick and mortar concept of a permanent establishment to assign tax jurisdiction.

Over the past years tensions have been mounting over alleged tax avoidance by the multinational giants like Whatsapp, Facebook, Google, Amazon, Twitter and others, who operated digitally and seemingly out of reach of tax authorities.  Botswana, in particular, has strong penetration of digital corporates, supported by one of the world’s highest mobile density rates where single users own and maintain multiple mobile phone subscriptions.