Toward a Legislative Framework for Data Taxation in the Digital Economy

Against the backdrop of rapid digital economy development, data has emerged as a crucial new factor of production, raising both opportunities and challenges for existing tax systems. This paper analyzes the complexity of taxing data elements, identifying misaligned tax classifications, the integration of data with traditional production factors, and the unique characteristics of data as key obstacles. It further argues for the necessity of data taxation from the perspectives of tax equity, economic benefit, and risk prevention. To address these challenges, the paper proposes legislative recommendations including legal system innovation, improvement of tax frameworks, and clarification of guiding principles. Emphasizing prudence, fairness, and flexibility, the study advocates for a balanced approach to building a scientific and effective tax regime for data that supports the sustainable and high-quality development of the digital economy.