The European Commission launched a public consultation on how the EU can ensure that the digital economy is taxed in a fair and growth-friendly way. This is the following up of the Commissions’ Communication on digital taxation, also as a response of the request by leaders at the European Council on October 19, when digital taxation became an politically and economically pressing issue.
The consultation is presented in the form of a questionnaire with two main parts on the issue concerned. On the one hand, the Commission consults for public opinions on current problems, including adaptation of existing framework on digital economy, tax challenge, proposed objective of digital taxation. On the other hand, the Commission asks for feedback on both short-term remedies put up in the agenda and long-term remedies under discussion. The temporary solutions include the introduction of a new tax on digital activities, withholding tax on certain type of digital transactions, tax on revenues from certain digital services, and digital transaction tax. The permanent solutions include CCCTB, exploring digital presence in the EU, destination-based tax, unitary tax, and residence tax base with destination tax rates. Corresponding economic effect of these remedies and administrative issues are consulted as well. In its first part, the questionnaire collects personal background information as well.
All EU citizens, businesses and organizations interested in the evolution of the digital economy may contribute to this consultation. National authorities of Member States will be consulted as well. This public consultation will run until January 3, 2018.
Source: EU Commission
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