Don't let tax issues trip up your digital strategy

THE potential of the digital economy is undeniable and the statistics speak for themselves. According to reports, the digital economy in South-east Asia alone has the potential to grow to US$200 billion by 2025, with e-commerce accounting for US$88 billion.

It is clear that there is a huge business opportunity in the digital economy. The Singapore government has put forth a strategy to nurture the country's digital economy, including numerous investments to build up infrastructure and encourage businesses to ride the digital wave.

The rise of globalisation and the digital economy has caught the eye of governments and tax authorities around the world. Many are concerned that their existing tax laws are outdated and not aligned with the way multinational enterprises are operating, hence leading to a loss of tax revenues.