Digitax

Globalisation and digitalisation alter the way economic activities are organised and weakens the link between location and value creation. Small local businesses and large tech companies are entangled globally, people can work remotely locally and internationally, and AI automates analytical work. All this contributes to productivity, growth, and welfare, but challenges basic principles of taxation and may threatens the way public welfare is financed.

Technological advances have shifted value creation from material towards immaterial assets which are harder to measure, easy to relocate, and part of global software-based and data-driven value chains. Consequently, it has become harder to determine not only the size but also where value is created and by whom. It is also increasingly hard to determine whether value creation stems from capital (technology) or labour and tax it accordingly. 

Remote work and gig-based work enables people to sperate where they live, work, and consume public welfare. International tax regulations have been formulated but need to be balanced against national legislation. Digitalisation is challenging the tax system through many small perturbations accumulating over time.

This Theme intends to investigate how the Swedish tax system can become more adaptable to the digital economy. Building on the interdisciplinary framework developed in an Advanced Study Group (2023-2024) effects of digitalisation on taxation along three dimensions will be studied: Geography, value creation, and complexity (interdependencies). 

The Theme will search for design principles for an adaptable and sustainable tax system that is coherent with the world we live in and also aims to establish a long-term research environment for taxation at Lund University.