Taxing the digital economy could slow progress on tax harmonisation

By Cécile Barbière | EURACTIV.fr

 translated by Paola Tamma

20-10-2017

The issue of taxing the digital economy could undermine efforts for harmonising fiscal rules in Europe. Unless member states kill two birds with one stone. EURACTIV France reports.

Tech giants like Google can file their profits where it is more fiscally convenient (here, Google's European HQ in Dublin, Ireland).
[Shutterstock]

Taxing GAFA (Google, Apple, Facebook, and Amazon) is a much-trumpeted initiative of the EU. During the EU summit taking place on 19-20 October in Brussels, 18 EU heads of government and heads of state will discuss how to tax tech giants.

The issue is not new, but the dossier has been sped up under pressure from Spain, Italy, Germany and France, who are pushing for this reform.

19 Member states

“There are about 19 member states interested in taxing digital companies. Reaching a consensus on fiscal rules on the e-economy is a great political achievement,” said a source in the French presidency.

Because of their digital nature, GAFA can declare their profits wherever they find the most lenient taxation rules.

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