RT Journal Article
T1 Storm in the cloud: A study on the macroeconomic impact of the UK’s digital service tax
A1 Alvarez Martínez, María Teresa
A1 Gesualdo, María
A1 Pycroft, Jonathan
K1 Digital economy
K1 Corporate taxation
K1 Fiscal policy
K1 Open economy macroeconomics
K1 General equilibrium modelling
AB The nature of the digital economy puts pressure on traditional taxpractices, as it is frequently characterised by high returns from intan-gibles. In this paper, we assess the macroeconomic impact of thedigital services tax introduced in the UK in 2020. We employ theCORTAX model, which is a macroeconomic model elaborated for theMember States of the European Union, the UK, the US, and Japan.The model strongly focuses on corporate taxation and multinationalfirms. To be able to represent the digital sector, a major extension ofthe model has been introduced to expand the model from one sec-tor to two, allowing the digital sector to be modelled separately fromthe rest of the productive economy. The results suggest a negativeimpact on GDP from the introduction of the tax but a gain in welfareand consumption for the UK and small positive spillovers for closetrading partners
PB Routledge Taylor & Francis Group
YR 2024
FD 2024-7-23
LK https://hdl.handle.net/10433/26154
UL https://hdl.handle.net/10433/26154
LA en
NO Economic Systems Research, 37-2. 175-195
NO Universidad Pablo de Olavide
DS RIO
RD May 9, 2026