EU - Oncoming Tax Rules On Digital Economy

; posted on
September 19th, 2017

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.

Changes in Taxation

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.

What to Expect from the Future of European Tax

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.

Sources: The Guardian, Balticcourse

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