The EU Parliament’s economic and monetary affairs (ECON) committee has presented its report with recommendations for a number of amendments to the Commission’s proposal for taxing businesses on the basis of a ‘significant digital presence’.
The EU Parliament’s economic and monetary affairs (ECON) committee has presented its report with recommendations for a number of amendments to the Commission’s proposal for taxing businesses on the basis of a ‘significant digital presence’.
On 5 December, at the plenary session of the European Parliament, the ECON committee presented its report on the proposal, which would tax businesses on the basis of a ‘significant digital presence’, even where they have no physical permanent establishment in the EU.
This proposal, closely related to the Commission’s plans for the CCCTB, was introduced in March 2018 as part of an overall approach to taxing digital business activities in the EU, together with a proposal for the ‘interim’ digital services tax (DST).
In the original proposal, a digital platform would be deemed to have a ‘significant digital presence’ in an EU member state if it fulfilled one or more of the following criteria:
Four EU member states: Denmark, Ireland, Malta and the Netherlands, have submitted reasoned opinions objecting to the proposal on the grounds it does not comply with the EU principle of subsidiarity.
The ECON report puts forward a number of amendments, which include:
The report also requires the Commission to evaluate the functioning of the directive after three years, including the types of services covered, relevant definitions and the effect on SMEs.
The directive is intended to apply from 1 January 2020. See bit.ly/2ryCUF4.
The ECON committee also presented its report on the DST at the Parliament’s 5 December plenary session, recommending a broadening of some aspects of the Commission’s original proposal. This followed the joint declaration by France and Germany at the ECOFIN Council meeting on 4 December calling for a scaled-back version of the tax.
Largely following its draft report published in September, the ECON committee’s main amendments would:
See bit.ly/2rzgaER.
French finance minister, Bruno Le Maire, has pledged to work with Germany until March 2019 to implement their joint proposal for a DST, but also confirmed that France would go ahead with a unilateral tax if those efforts fail.
The OECD’s task force on the digital economy is due to present an update to the inclusive framework in January. OECD director for tax policy, Pascal Saint-Amans, has indicated that the OECD will release an update on its work on taxation of the digital economy by the end of January.
The EU Parliament’s economic and monetary affairs (ECON) committee has presented its report with recommendations for a number of amendments to the Commission’s proposal for taxing businesses on the basis of a ‘significant digital presence’.
The EU Parliament’s economic and monetary affairs (ECON) committee has presented its report with recommendations for a number of amendments to the Commission’s proposal for taxing businesses on the basis of a ‘significant digital presence’.
On 5 December, at the plenary session of the European Parliament, the ECON committee presented its report on the proposal, which would tax businesses on the basis of a ‘significant digital presence’, even where they have no physical permanent establishment in the EU.
This proposal, closely related to the Commission’s plans for the CCCTB, was introduced in March 2018 as part of an overall approach to taxing digital business activities in the EU, together with a proposal for the ‘interim’ digital services tax (DST).
In the original proposal, a digital platform would be deemed to have a ‘significant digital presence’ in an EU member state if it fulfilled one or more of the following criteria:
Four EU member states: Denmark, Ireland, Malta and the Netherlands, have submitted reasoned opinions objecting to the proposal on the grounds it does not comply with the EU principle of subsidiarity.
The ECON report puts forward a number of amendments, which include:
The report also requires the Commission to evaluate the functioning of the directive after three years, including the types of services covered, relevant definitions and the effect on SMEs.
The directive is intended to apply from 1 January 2020. See bit.ly/2ryCUF4.
The ECON committee also presented its report on the DST at the Parliament’s 5 December plenary session, recommending a broadening of some aspects of the Commission’s original proposal. This followed the joint declaration by France and Germany at the ECOFIN Council meeting on 4 December calling for a scaled-back version of the tax.
Largely following its draft report published in September, the ECON committee’s main amendments would:
See bit.ly/2rzgaER.
French finance minister, Bruno Le Maire, has pledged to work with Germany until March 2019 to implement their joint proposal for a DST, but also confirmed that France would go ahead with a unilateral tax if those efforts fail.
The OECD’s task force on the digital economy is due to present an update to the inclusive framework in January. OECD director for tax policy, Pascal Saint-Amans, has indicated that the OECD will release an update on its work on taxation of the digital economy by the end of January.