Many ways multinational corporation have done for making efficiency to operation, through internal policy, market strategies, expansion in another country, product improvement, innovation and tax planning. The last one strategy is the point, how multinational corporation in technology play it aggresively or safely. And, no doubt, tax saving is one way to maximize company’s profit significantly using grey area in a set of rule each country. In fact, the paramount problem for government is they can’t imposed taxes to some kind of technology multinational firm. This issue happened because currently these firms have no physical presence in some countries, but they have high income from the user there. No operation in the area, no tax compulsion fulfillment. For instance, Google, Amazon and Facebook. They have great impact in tax debated in Europe. These firms didn’t operate in United Kingdom and France, the underscore fact is they still operate through their users with no office there. Loss of high tax potential for a long time prompted government to make a pace, advance protocol to make this loss of tax potential could be taxable.

The unilateral solution has been implemented by these two countries, UK and France. Firstly, French imposed  tax to revenue from users in their country 3% for the digital platform. Also, UK have done similiar way followed French with rate 2%. This regulation making great impact which come from United States government and giant digital business as mentioned above. Negotiation from many country still occur until now. Especially to found multilateral solution together, and OECD have been worked to get tax solution. Universal solution for this kind of technology firm which can implement to all country through treaty. As a result, the movement of these countries were strict for some behalf.

Digital business has a lot of biggest impact in social life in society, private behalf, and specifically giving income contribution to government in a country. This business has huge potential and will be more in the future. The question, what country will get the direct benefit for this business? Absolutely, the answer chiefly come from where the headquarter of the business is. Also, where this business has physical presence is the key of issue that already discussed for a long time, the subsidiary company. I think, the best strategy for a country to increase their income beside tax strategy is build the great business ecosystem. Many option could be take, for example a country might be decrease company’s tax rate, it will affect FDI (Foreign Direct Investment) to the country and might be get physical presence of the business there. This is why many country competed in tax rate. Based on OECD report since 2000, over 21% tax rate was diminished for increasing foreign investment. In the other side, it’s open chance to society to get a job, in return, government could be increase tax rate in individual with mulling other factor such as prosperity from their society. And many other strategies. One step ahead in policy is critical to prescribe direction a country to face challenges nowadays. Multilateral solution for tax would be one of the best offer to complement and enhance income strategy of a country in this digital business era.