Tax administrations and international experts discuss challenges in the digital economy at 3rd NTO Technical Conference
The 3rd NTO Technical Conference, held in Panama City from 18 to 20 February, offered a platform for tax administrations worldwide to address the complexities of taxing the digital economy, exchange experiences, and explore practical approaches, sharing the floor with representatives from Ministries of Finance, experts from international financial and development organisations, the private sector, and civil society organisations.
Hosted by the Inter-American Center of Tax Administrations (CIAT), the three-day event focused on crypto assets, e-commerce, and the gig economy, offering insights into regulatory approaches and tax enforcement strategies. The varied expertise of voices offered a broad range of perspectives on the state of play of key topics to the digital economy.
The Conference was attended by more than 130 participants on site in Panama and over 200 online attendees. Participants represented approximately 40 tax administrations and ministries of finance worldwide, as well as over 15 international bodies, including development banks, international fiscal organisations, research institutes, civil society organisations, and the private sector.
Key discussions and outcomes
Discussions of the first day covered the fundamental challenges in crypto taxation, including unclear definitions, regulatory gaps, and transaction anonymity. It highlighted the importance of modernising tax systems through better IT, enhanced data analytics, and educational investments to keep up with the fast-evolving crypto world.
"Crypto assets are here to stay. They are part of the world we live in and require regulation.”
Gonzalo Arias, Cooperation and International Taxation Director at CIAT.
Experts from the IMF and the tax administrations of Brazil and Spain shared insights on enhancing compliance through data collection, IT upgrades, and targeted enforcement. Representatives from India and the UK tax authorities discussed the difficulties in legally recognising and classifying crypto assets, while the OECD called for updated, clear tax rules and voluntary disclosure schemes. A separate session addressed the use of crypto assets in financial crime. The sessions also showcased global enforcement efforts, including case studies on asset seizures and cross-border cooperation, and underscored the critical role of public-private partnerships and specialised training to tackle crypto-criminal activities.
The second day of the Conference focused on the taxation of digital platforms and cross-border digital services. Experts discussed the need for stronger information exchange between tax authorities, with Portugal and Chile showcasing successful systems for enforcing reporting obligations. Countries like Peru and Colombia introduced Significant Economic Presence rules to ensure foreign digital service providers contribute to local tax revenues. The discussions highlighted the growing role of digital platforms in modern taxation and the challenges of balancing compliance, administrative efficiency, and economic impact.
“Digital platforms are now, and will remain, an essential component in the application of taxes, offering a clear opportunity for tax authorities to enhance the enforcement of tax systems” .
Cristina Herrera, Director of Studies at Institute for Fiscal Studies, Spain’s MoF.
Further sessions examined the debate between Digital Services Taxes (DSTs) and OECD’s Pillar 1, assessing that DSTs offer more revenue potential and flexibility for developing countries. The South Centre and the Independent Commission for the Reform of International Corporate Taxation called for a shift of negotiations towards the United Nations Framework Convention on International Tax Cooperation (UNFCITC) for a fairer international tax framework. Additionally, discussions on VAT for cross-border digital services featured insights from the African Tax Administration Forum (ATAF) and the World Bank, emphasising readiness, communication, and challenges for VAT implementation on the digital economy. Case studies from Kenya and South Africa shared their approaches to taxing digital imports.
Day two outlined that while digitalisation creates enforcement challenges, it also presents opportunities for tax administrations to refine their approaches and strengthen revenue collection.
On the third day, Tax Justice Network Africa (TJNA) highlighted how international tax rules often favour developed countries, making it harder for others to collect revenue. Kenya and Nigeria shared their efforts to tax digital services, while ATAF stressed the need for integrated technology systems to track digital transactions and improve countries’ enforcement capacity.
“Developing countries need to build stronger tax administrations to ensure that digital services are taxed fairly and equitably” .
Chenai Mukumba, TJNA’s Executive Director.
Discussions also covered crypto tax enforcement, with officials from Customs and Revenue Authorities from Italy, Austria, Bulgaria and Sweden sharing their experiences. The final session looked at how tax administrations must adapt to the rapid-evolving digital tax landscape, highlighting that it requires substantial technological input and expertise. Digital transformation presents both challenges and opportunities, with skilled workforce development being essential for effective tax administration in the evolving digital landscape.
Way forward
The 3rd NTO Technical Conference highlighted that embracing the digital era is essential for developing efficient, transparent, and modern revenue administrations - ensuring they remain equipped to address emerging challenges and serve the public interest. It demonstrated the value of technical exchanges and peer learning for NTO members and their national tax administrations, while highlighting NTO’s role in fostering collaboration among tax administrations worldwide to enhance their efficiency for the wellbeing of citizens.
As the Network of Tax Organisations (NTO) continues to facilitate knowledge-sharing among its members, the insights gained from this Conference will inform future initiatives aimed at strengthening tax systems in an increasingly digitalised world.
