During an extended meeting of the EU finance ministers of finance in Brussels, the two key players of the Eurozone – Germany and France – decided to set aside plans for an ambitious Europe-wide digital tax on tech companies that mostly targets advertising sales that could leave tech-giants free from being heavily taxed.
In particular, Amazon and Apple may then be off the hook after an
Economic and Financial Affairs Council meeting of the EU’s finance ministers who proposed a 3% tax on revenues generated by ad sales in the digital economy. As a diplomatic source confirmed to New Europe late on December 3, a wider digital tax with a revenue of around €5 billion a year was no longer on the agenda of either Paris and Berlin.
This is as the source confirmed due to the German side’s concerns that the digital tax would also sweep car companies, and also to secure broader consensus on the table.
According to the proposal, if the OECD is not on board with the discussions, the EU’s legislation is expected to enter into force in 2021-2022 if the bloc’s finance ministers agree by March of next year.
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