Digital taxes in developing countries and their role in political and economic stability after 2020

Structural shifts in the global economy, driven by the digital revolution, have reshaped economic activity. A key feature of these shifts is the rise of business models based on a physical presence, which has diminished the effectiveness of traditional tax systems based on the concept of "permanent presence." Developing countries, in particular, have faced the consequences of this transformation, as the erosion of their tax bases has reduced their capacity to finance essential public services. The COVID-19 pandemic further accelerated this reality, as digital services became the lifeblood of economies and societies, widening the tax justice gap and creating unprecedented financial pressures on governments. This research focuses on analyzing the strategic role of digital taxation in enhancing the political and economic stability of developing countries in the post-COVID-19 era, with an emphasis on two leading models: the United Arab Emirates and Singapore. The findings demonstrate that adopting flexible and phased digital tax policies, supported by a comprehensive strategic vision, has significantly contributed to economic diversification, enhanced fiscal resilience, and the building of institutional trust in both countries.