EU suspends digital tax plans
First accepted by the G7, the international agreement includes plans to redistribute tax rights and set a global minimum corporate tax rate of 15 percent. It received additional impetus recently when G20 finance ministers and central bank governors gave the green light.
“The success of this process will require a last effort, a last effort on the part of all parties, and the Commission is committed to focusing on this effort,” said a spokesperson for the European Commission. “For this reason, we have decided to suspend our work on a digital tax proposal.”
The spokesperson, however, declined to say whether US lobbying played a role in his decision to suspend his digital tax plans.
The EU executive plans to “reassess” its proposal in October, when the G20 wants the technical details to be finalized.
EU countries like France, Spain and Austria argue that big tech companies don’t pay their fair share of taxes, as tax rights are always determined by where their headquarters are located. corporate social responsibility, usually in countries that offer low tax rates, such as Ireland by where goods and services are purchased by customers, which they believe marks when real income comes from Actually.
Worried about the growing fragmentation within the single market, the European Commission has started work on an EU-wide digital tax with the aim of making it operational by 2023. The executive had previously said that the levy would be modest and non-discriminatory and would work in parallel. to the international agreement pushed by the Organization for Economic Cooperation and Development (OECD).
However, the United States disagrees, arguing that such a digital tax would be discriminatory as the primary target would be the American giants, which dominate the online services market globally.
Ever since the G7 concluded the landmark tax deal, Washington has asked the EU to wait until the technical details of the OECD deal are finalized at least.
Fibre2Fashion Information Office (DS)
The European Union (EU) has “suspended” plans for a digital tax on global tech giants. The move reportedly followed pressure from the United States, which believes the EU’s levy is now redundant due to a separate deal to reform the global tax system. The EU-wide tax plan is part of an attempt to increase financial resources and fund the post-COVID-19 recovery.