Extending Tax Sovereignty to the Internet Space

The article analyzes the extension of tax sovereignty to the Internet space, and describes the legal instruments that regulate the taxation of digital companies and projects. The purpose of the study is to analyze trends in the spread of tax sovereignty to Internet projects and companies, and to find an answer to the question whether it is possible to extend the tax jurisdiction of the state to the Internet. Using historical and legal research methods, the author analyzed the works of researchers on theory of law and taxation and conducted a content analysis of the Organisation for Economic Co-operation and Development (OECD) acts and Russian tax legislation.The author concludes that many states have just begun the process of extending tax sovereignty to the Internet space. Effective tax instruments have not yet been developed, but work is underway in this direction. The author defines this trend as one of the global challenges of modern law.