The European Commission has opened the feedback period for its proposed initiative to introduce a ‘digital levy’ to address the issue of fair taxation of the digital economy. The initiative proposes the introduction of an EU-wide digital tax but states that this should interfere with the ongoing work of the OECD on a reform of the international corporate tax framework, and accordingly must be compatible with any agreement reached by OECD in addition to wider international obligations. The Commission states that it also wants to consider additional policy options, including:
a corporate income tax top-up to be applied to all companies conducting certain digital activities in the EU;
a tax on revenues created by certain digital activities conducted in the EU; and
a tax on digital transactions conducted business to business in the EU.
The roadmap is open for feedback until 11 February 2021, after which a public consultation will be launched to allow all stakeholders to give their views on all the aspects of a digital levy, as well as on the potential impact of the different options under consideration.
The European Commission has opened the feedback period for its proposed initiative to introduce a ‘digital levy’ to address the issue of fair taxation of the digital economy. The initiative proposes the introduction of an EU-wide digital tax but states that this should interfere with the ongoing work of the OECD on a reform of the international corporate tax framework, and accordingly must be compatible with any agreement reached by OECD in addition to wider international obligations. The Commission states that it also wants to consider additional policy options, including:
a corporate income tax top-up to be applied to all companies conducting certain digital activities in the EU;
a tax on revenues created by certain digital activities conducted in the EU; and
a tax on digital transactions conducted business to business in the EU.
The roadmap is open for feedback until 11 February 2021, after which a public consultation will be launched to allow all stakeholders to give their views on all the aspects of a digital levy, as well as on the potential impact of the different options under consideration.
