E-commerce tax: an opportunity for Africa?

The digital transformation does away with the need for multinational enterprises to be physically present in the countries where they operate. This poses a major challenge in terms of taxation and lost revenues for African economies. The reform of the international taxation of multinational enterprises, which resulted in the adoption of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) initiative in October 2021, has received support from 23 African countries. A study financed by AFD on this issue offers arguments to African policymakers in order to promote their more active involvement in international negotiations on the subject.