The conclusions adopted by the member states of the EU without debate on Tuesday 5 December concerning the taxation of the digital economy stressed their “preference” for a global solution.
However, taking note of the “interest of many member states for temporary measures, such as for example an equalisation levy based on revenues from digital activities in the EU”, the ministers consider that “these measures could be assessed by the Commission”. They therefore go on to state that they look forward to “appropriate Commission proposals by early 2018, taking into account relevant developments in ongoing OECD work and following an assessment of the legal and technical feasibility as well as economic impact of the possible responses to the challenges of taxation of profits of the digital economy”.
A fairly prescriptive paragraph on what should constitute a 'significant digital presence' has been revised. A document dated 20 November, referred to user numbers, the duration of the digital economic presence and the location of digital activities within a jurisdiction. The text adopted on Tuesday now states that this criterion should be revenue-based, user-based and include digital factors. The Commission is expected to present two proposals: one for a short-term and the other for a long-term solution, possibly in the form of amendments to the common consolidated corporate tax base. (Original version in French by Élodie Lamer)