Digital economy must gear up for EU tax reform

eubusiness

The EU Commission launched its agenda to reform taxation of online business Thursday, paving the way for a legislative proposal on EU rules for taxation of profits in the digital economy.

The effective tax rate of digital companies in the EU is estimated to be half that of traditional companies – and often much less. The Communication adopted by the Commission sets out the challenges EU Member States currently face on this issue and outlines possible solutions.

While acknowledging that the growing digitalisation of the economy creates important economic opportunities, Euro Commissioner Valdis Dombrovskis said: “tax systems should evolve to capture new business models while being fair, efficient and future-proof. It’s also a question of sustainability of our tax revenues as traditional tax sources come under strain.” …

Read more : EUBusiness, 22.09.2017