| Author (Corporate) | European Commission |
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| Series Details | COM (2018) 147 |
| Publication Date | 21/03/2018 |
| Content Type | Policy-making |
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Summary: Proposal for a Directive adopted by the European Commission in March 2018, which lays down rules extending the concept of a permanent establishment - as it applies for the purposes of corporate tax in each EU Member State - so as to include a significant digital presence through which a business is wholly or partly carried on. The proposed Directive also establishes certain principles for attributing profits to or in respect of a significant digital presence for corporate tax purposes. Further information: The proposal provides an adapted solution to the question 'where' and 'what' to tax in the digital economy determining a significant digital presence (which can be established even when there is no physical presence) in a Member State (tax residence). The proposal also provides for necessary criteria to determine where the users and contracts are deemed to be located. In addition it provides for new rules for attributing profits of digital businesses. The proposal was adopted by the European Commission on 21 March 2018, as part of a package of measures on taxation standards for the digital economy. It required unanimity in the Council of the European Union for its adoption, following consultation of the European Parliament. The latter approved its position on this proposal on 13 December. The Council carried out a number of discussions and decided to prioritise work on another proposal put forward alongside this draft law. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:147:FIN |
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| Subject Categories | Taxation |
| Subject Tags | Digital Economy |
| Keywords | Digital Taxation |
| International Organisations | European Union [EU] |
