Digital Services in Africa: Rebalancing Business Income Taxation through Inter-Nation Equity

This article compares the OECD’s Pillar One with domestic Digital Services Taxes (DSTs) in Africa, evaluating fairness, neutrality, simplicity and administrability. African DSTs perform well on inter-nation equity and other policy principles, while Pillar One performs poorly. The article concludes that developed countries should avoid constraining DSTs until developing countries’ subsistence deficits are addressed.