Sri Lanka, July 8 -- Sri Lanka's proposed framework to tax digital services could inadvertently raise compliance costs for multinational companies and make the country a more complex market to serve unless authorities provide greater clarity on the new rules, tax experts at EY Sri Lanka have cautioned.

As Sri Lanka moves to tax digital services provided from overseas, questions are emerging over whether the new framework provides sufficient certainty for multinational businesses operating across multiple jurisdictions.

In a joint analysis, EY Sri Lanka Head of Tax Sulaiman Nishtar, Partner-Tax Shehani Paranavitane and Principal-Tax Shakthi Velauthapillai said the issue is not whether digital services should be taxed, but whether busine...