CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EU To Push For International Tax Reform

EU To Push For International Tax Reform

by Ulrika Lomas, Tax-News.com, Brussels

07 December 2017


The European Council has agreed that the EU will provide input at an international level on discussions on the taxation of profits in the "digital economy."

According to the Council, action is necessary because the digital economy is now challenging the agreed concepts of international tax rules. It said that the current rules were designed for the traditional economy, and do not apply to activities that require no physical presence in the country where goods and services are sold.

The Council called for close cooperation with the OECD and other international partners. It suggested that the concept of "virtual permanent establishment" should be explored, together with amendments to the rules on transfer pricing and profit attribution.

The OECD is expected to provide an interim report on the digital economy to the G20 in April 2018.

Toomas Toniste, the Estonian Minister for Finance, said: "With the growth of the digital economy, we need to rethink our tax rules. We need to take our international taxation rules into the digital age to ensure fair taxation for both digital and non-digital companies. The EU is today taking a leading role in this."

TAGS: tax | Estonia | transfer pricing | G20 | European Union (EU) | services | Europe | BEPS

To see today's news, click here.

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 











Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »