Article on Significant Economic Presence - By Ms. Parul Jolly And Mr. Yuvraj Awasthi

Remote participation in the domestic economy of a country facilitated by digital means but without a taxable physical presence is often seen as a key concern in the digital tax debate. With the rapid evolution of information and communication technology, the possibility to reach and interact with customers remotely through the internet has significantly reduced the need for local infrastructure and personnel to perform sales activities in a specific jurisdiction. As a result, the rights of the source country to tax business profits that are derived from its economy are unfairly and unreasonably eroded.