Effect of Direct tax on the Income of Internet Companies

Abstract

The rise of the internet and digital technologies has revolutionized the way businesses operate, and with it, the way they are taxed. This thesis investigates the effect of direct tax on the income of internet companies, focusing on the challenges and opportunities that arise from the digitalization of the economy. The research seeks to thoroughly explore the tax ramifications of digital enterprises and provide valuable perspectives on potential tax restructuring. The study focuses on the complexities in taxation posed by the digital economy, specifically how conventional tax regulations are applied to income generated from
online advertising and other digital platforms. The study investigates how Afghanistan and global tax regulations are applied to revenue generated from online advertising, pinpointing difficulties and issues within the existing tax framework. The questions arise the thesis are: 1. What are the Effect of Direct Tax on the Income of Internet Companies? The data is collected from
primary methods from three ISPs and secondary data through books, research papers and websites. In result the findings of this thesis contribute to the ongoing debate on the appropriate taxation policies for internet companies, particularly in the context of the rapidly evolving digital economy. By examining the effects of direct taxation on the income of internet companies, this research provides valuable insights into the potential implications of different tax policies and offers recommendations for policymakers to consider when designing taxation systems that effectively balance the needs of both businesses and governments.