This paper examines strategies and policy options for taxing the digital economy. For Asia-Pacific countries, strategic considerations include balancing revenue potential, administrative capacity, and investment attractiveness. While the OECD “Pillar Two” offers immediate benefits, “Pillar One” requires cautious engagement due to uncertain revenue outcomes and high compliance costs. Countries may also consider unilateral measures such as digital services taxes (DSTs), withholding taxes (Article 12B of the UN Model Convention), diverted profits taxes, and VAT on digital services. DSTs provide immediate revenue but risk trade conflicts and double taxation. The paper emphasizes forming national strategies based on country-specific conditions—such as market size, administrative capacity, and reliance on foreign direct investment. It highlights the importance of collective action to reduce trade risks and compliance burdens. Ultimately, while supporting multilateral solutions to avoid harmful tax fragmentation, countries must evaluate whether the benefits of participating outweigh administrative and economic costs. They should also prepare fallback options if global consensus on Pillar One fails. In conclusion, the paper recommends adopting Pillar Two where possible and taking a cautious, strategic approach to Pillar One and unilateral measures, to ensure fair tax collection without undermining investment or creating excessive administrative burdens.