Taxing Artificial Intelligence and Robots - Critical Assessment of Potential Policy Solutions and Recommendation for Alternative Approaches - Sovereign Measure: Education Taxes/Global Measure: Global Education Tax or Planetary Tax

Oct 22, 2026

Uploaded by SALUTone

Taxing Artificial Intelligence and Robots: Critical Assessment of Potential Policy Solutions and Recommendation for Alternative Approaches evaluates whether AI and robots will generate large-scale unemployment and reduced government tax revenues, using mapped Industrial Revolution stages and a literature review spanning economic and demographic studies. The work assesses proposed AI/robot tax options against established tax policy principles for electronic commerce, concluding several proposals violate neutrality, simplicity, certainty, efficiency, effectiveness and fairness, and flexibility. Targeted AI/robot taxes are therefore discouraged, while governments should proactively monitor impacts and consider earmarked education taxes or a multilateral global redistribution mechanism.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages51

Reading Time2 h 9 min

AccessFree to download

Introduction

Mapping the Stages of the Industrial Revolution

Survey on the Impact of AI and Robots on Jobs

economic literature relevant to the debate

The demographic perspective

Taxing AI and Robots

Setting the assessment framework

Targeted measures to tax AI/robots

Assessment of the targeted measures

Concluding remarks from an innovation perspective

Our Recommendation: Earmarked Education Taxes

overview

education taxes: Lessons from selected countries

General measures vs earmarked measures

Taxing Artificial Intelligence and Robots: Critical Assessment of Potential Policy Solutions and Recommendation for Alternative Approaches – Sovereign Measure: Education Taxes/Global Measure: Global Education Tax or Planetary Tax In recent years, investments in technology have resulted in an exponential growth of AI/ robots. It is argued that some of these innovations are able to outperform and replace humans in various types of jobs. Accordingly, concerns regarding government revenues have been raised, as AI/robots could trigger widespread unemployment with the result that less tax revenue will accrue to the government. This contribution, as a start, analyses whether or not this is truly a concern. In order to do so, the authors map the Industrial Revolution(s) that humankind has witnessed and then conduct a literature review of economic and demographic studies relevant to the debate. The economic studies indicate two different directions, that is, some argue that AI/robots (Industry 4.0) will increase human jobs whereas others argue that jobs could disappear. At the same time, the demographic perspective indicates that a purely economic employment-focused view of AI/robots is bound to lead to inconclusive results. Assuming that this is a probable concern, the authors summarize selected measures taken by governments as well as the various options that have been considered in academic literature to introduce taxes on AI/robots. Subsequently, the authors analyse the various “taxing” options from the perspective of commonly accepted tax policy principles applicable to electronic commerce (Ottawa Taxation Framework conditions). This analysis indicates that several proposals (e.g. proposals that treat AI/robots as independently taxable subjects or proposals that attribute income to owners of AI/robots) breach the principles of (i) neutrality; (ii) simplicity and certainty; (iii) efficiency; (iv) effectiveness and fairness; and (v) flexibility. Thus, such measures should not be pursued. The authors also conclude that, at this stage, targeted taxes on AI/robots should not be introduced, as this would also be contrary to the measures taken by governments globally to promote research and development (R&D) (input or output incentives). The present contribution therefore suggests that governments need to be proactive rather than reactive in this area. This could be achieved by monitoring the impact of AI/robots on a regular basis, and if the trend indicates that * Prof. Dr Vikram Chand, LLM, is an Associate Professor at the University of Lausanne, Faculty of Law. He is also the Program Director of the Executive Program in Transfer Pricing. ** Prof. Dr Svetislav V. Kostić, LLM, is an Associate Professor at the University of Belgrade Faculty of Law, teaching at both undergraduate and graduate levels, while he also lectures at the University of Amsterdam and the University of Lausanne. Until 2016, Dr Kostić also held the post of Director with Deloitte Serbia Tax Services. He is one of the founders of the Serbian branch of the International Fiscal Association, currently in the capacity of its Secretary General. He is a member of the Practice Council of the New York University School of Law LLM in International Taxation and one of the Vice Chairs ofthe IFA Europe Region. *** Ariene Reis, Tax Associate at Rolim, Viotti & Leite Campos Advogados, Sao Paulo, Brazil; Master of Advanced Studies in International Taxation (MASIT), Université de Lausanne, Switzerland; Master of Business Administration (MBA), FIPECAFI, Sao Paulo, Brazil; and Bachelor of Laws (LLB), Universidade Presbiteriana Mackenzie, Sao Paulo, Brazil. © IBFD World Tax Journal November 2020 | 711 Exported / Printed on 9 Aug. 2021 by IBFD. jobs are disappearing or revenues are declining, then the article suggests that states raise funds from an earmarked education tax. The funds raised from this tax, among other objectives, should be used to finance and foster profess

FAQs

What concern does the contribution analyze regarding AI/robots and government revenues?

It examines whether AI/robots could trigger widespread unemployment and thereby reduce tax revenues accruing to governments.

How do the authors evaluate proposed taxes on AI/robots?

They analyze “taxing” options using commonly accepted tax policy principles applicable to electronic commerce, including neutrality, simplicity and certainty, efficiency, effectiveness and fairness, and flexibility.

What is the recommendation on introducing taxes on AI/robots at this stage?

The contribution concludes that targeted taxes on AI/robots should not be introduced, and instead governments should be proactive by monitoring impacts and, if needed, consider earmarked education taxes or global redistribution mechanisms.

Oct 22, 2026

Uploaded by SALUTone