In this article, Sharon Burke reviews recent developments surrounding European Union (EU) digital tax proposals.
Following meetings of EU Finance Ministers in April and June 2018, it appears that proposed interim measures to levy a 3 percent tax on digital economy revenues of companies operating in specified sectors are unlikely to be unanimously adopted by Member States. Opposing countries believe that achieving a global consensus on taxing transactions in the digital economy is important to minimise the risk of double taxation and to maintain the comparative competitive position of the EU.
Supporting countries consider that swift action is necessary to ensure that businesses operating in a highly digitalised environment without paying taxes in the consumer markets in which they operate pay their fair share of tax.
Click here to read more on the EU and global reactions to taxing the digital economy via TaxWatch, KPMG’s dedicated portal for insight on tax developments of interest to KPMG clients.