Mexico Imposes Digital Services Tax on Online Activities | Carlton Fields

Possible Future Risk for U.S. Financial Services Companies
Global digitalization spurred by rapid advances in digital technology is enabling virtual business operations at a frenetic pace, including by insurance and other U.S. financial services companies. Without the need for physical presence or infrastructure in a specific jurisdiction, technological platforms facilitate the delivery of services on a worldwide basis, posing challenges to taxing authorities in collecting tax from online activities such as streaming services like Netflix, and digital intermediation services like Amazon (where the digital intermediation leads to the sale and purchase of goods) or Expedia (where the digital intermediation leads to the sale and purchase of services).

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