The ministers of EU Member States reached a consensus on amending the existing international tax rules to plug the evasion of digital economy during the informal meeting of the EU Finance Ministers in Tallinn. Before the meeting, several Member States had proposed to update the taxing rules to collect a fair share from the digital giants, such as Estonia and the G4 countries.
Following the proposition of the revised plan by the G4 countries, 10 out of 28 Member States have agreed to collect tax from tech giants such as Google, Apple, Airbnb and Amazon based on their gross revenue instead of gross profits. However, some countries, such as Denmark and Luxembourg, argued that tax in Europe had been heavy enough and such unilateral measures could only harm the tax competitiveness in Europe.
The Estonian and French Proposal were both submitted in the Tallinn meeting, but further technical details on digital economy taxation are to be discussed by another summit of EU leaders on September 29. The proposals have received both support and doubts from the ministers, and results of these negotiation are expected to be released at the summit of finance ministers in December.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):