Prior to the breakout of COVID-19, based on the Online Education Market & Global Forecast issued by Research and Markets, the online education market was expected to reach US$350 Billion by 2025. Given the counter-pandemic measures that have placed restrictions on in-person teaching and training, the demand for digital/online learning is expected to soar even further.

With digital/online learning, teaching and training may be delivered across borders. With the issuing of the “Statement by the OECD/G20 Inclusive Framework on BEPS on the Two-Pillar Approach” that aims to address “Tax Challenges Arising from the Digitalisation of the Economy”, management should bear in mind the relevant potential tax implications and businesses should ensure their readiness for the international tax rules of the 21st century, under which the nexus between physical presence and taxing right is downplayed.

If you have or contemplate to set up a digital/online learning business and would like to learn more about the relevant tax implications and how exposures may be mitigated, please feel free to connect with us.