The EUROPEAN commission proposed on Thursday to the EU in the first place to reach an international agreement on the taxation of the digital economy, including Google, Amazon and Facebook.
In the other hand , the EU should impose a digital tax. Both short-term and long-term solutions are available.
It appears from a communication from the commission.
”The goal is that companies should pay a fair tax where the gains arise. Digital companies make very large profits even if they do not have a physical presence in the EU”, said skattekommissionär Pierre Moscovici in a statement.
At this weekend’s ecofin meeting in Tallinn, EU finance ministers a comprehensive discussion of the issue. The ministers set the goal to agree on a direction, at its meeting in december.
About 20 of the 28 EU countries advocated the establishment of an international solution within the OECD. A majority of the countries wanted to try to introduce some kind of sales tax, on the proposal of the French finance minister, Bruno Le Maire.
Finance minister Magdalena Andersson was skeptical, together with the various EU-countries, who in various ways have been seen as tax havens within the EU: Luxembourg, Ireland, Malta and Cyprus.
The commission followed on the Thursday the majority view.
The face of the international reform efforts within the OECD, EU countries should gather around an ambitious EU position, the commission has proposed. EUROPEAN summit on the digital issues on the 29 of september in Tallinn is expected to provide guidance.
If there is no international agreement with the enough asked the EU to introduce a digital tax on their own.
Several options are available. In the short term, the commission mentions a targeted sales tax or a annonsskatt over the whole of the EU.
In the long term , the commission argued that the digital tax be integrated into a common consolidated corporate tax base (CCCTB). The commission proposed the CCCTB 2016, but work has been slow. All tax matters require unanimity among all EU countries.
Pierre Moscovici reminded that the non corporate tax, meant big losses for EU countries ‘ treasuries.
”We must go forward as 27 countries, if we want to be effective. We must at all costs avoid the creation of digital tax havens where tax treatment is more attractive,” he said.
Skattekommissionären counted, therefore, not with the EU’s 28th country, the united kingdom, as the country is on the road to leave the union.
At a press conference said the commission’s vice-president of the EMU Valdis Dombrovskis to a digital tax is only part of the overall fight against tax evasion.
”The digital economy offers new opportunities to move profits to jurisdictions with little or no tax,” he said.
He rejected to proposals directed against the economic model in Ireland or any other EU country.
A withholding tax on online transactions were another possibility, said Valdis Dombrovskis.
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