| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2017) 547 final (21.09.17) |
| Publication Date | 21/09/2017 |
| Content Type | Policy-making |
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Further information: The aim of the document is to ensure a coherent approach in the European Union regarding taxation of the digital economy, one which can support the Commission's aim to complete the Digital Single Market (DSM) and ensure the fair and effective taxation of all companies. While the focus should be on pushing for a fundamental reform of international tax rules, the absence of adequate global progress justifies that the EU implements its own solutions to taxing the profits of digital economy companies. The document outlines the Commission's long term strategy, as well as some of the short term solutions that have been discussed at EU and international level this far. This Communication paves the way for a legislative proposal on EU rules for the taxation of profits in the digital economy, as mentioned at the 2017 State of the Union address. It should also feed into international work in this area, notably in the G20 and the OECD. A public consultation was launched on 26 October on how the EU can ensure that the digital economy is taxed in a fair and growth-friendly way. Background information: This reflection started from the perception that the existing tax framework did not fit realities because it was designed for the traditional economy and could not capture activities which are based on intangible assets and data. The effective tax rate for digital companies was thought to be half that of traditional companies, or less. At the same time, unilateral measures by Member States were seen as additional obstacles. These matters were subject to discussion during the informal ECOFIN meeting in September 2017 and were expected to be on the agenda for the following months. The European Commission published in September 2017 a Communication setting out the challenges facing the Member States when it comes to acting on digital taxation and outlining potential solutions. This was followed by the launch of a public consultation on 26 October. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2017:547:FIN |
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| Subject Categories | Taxation |
| Countries / Regions | Europe |
