While a European solution on digital taxation (see EUROPE 11986/10) was officially rejected at the March Economic and Financial Affairs Council (see EUROPE 12221/6), Member States must now coordinate to try to speak with one voice in international negotiations on this subject at the OECD.
It is also on this same subject that the European Finance Ministers, meeting in Bucharest for an informal meeting on Saturday 6 April, discussed at a working session devoted to the “role of taxation in supporting economic growth” (see EUROPE 12229/26).
In particular, OECD Secretary-General Ángel Gurría briefed ministers on the progress made in finding an international solution on digital taxation (see EUROPE 12183/18).
According to a European source, he reported “real progress” in making an agreement in 2020 still as ambitious, but nevertheless realistic. Progress would focus on the reallocation of tax revenues and the principle of minimum corporate taxation. A roadmap for long-term solutions is also expected in May.
At a press conference, European Commissioner for Financial Services, Valdis Dombrovskis, said that the Commission had proposed holding a specific debate on this issue at the May Ecofin Council in order to coordinate the EU's position for the next G20. The Commission should propose “specific options” in the context of this debate.
According to the same source, a debate between Finance Ministers was requested by Luxembourg at the meeting, in order to also involve Member States that are not G20 members.
“Obviously, we have more leverage if we speak with one voice”, said Commissioner Dombrovskis. “If we can reached international agreement in the area of digital taxation, we can of course also then adjust our work within the EU to be sure it falls within this broader international context”, he explained.
The Commission remains convinced that in the absence of an international agreement, it would be better to move forward at the EU level to avoid fragmentation of solutions at the EU level, he recalled.
According to the same source, the ministers also discussed the need to strengthen the fight against tax evasion and 'green' taxation. However, the Dutch proposal to have a European initiative on air transport taxation would not have been discussed (see EUROPE 12192/15).
The Commission also recalled that unanimous decision-making in the tax field continued to be a major obstacle.
On this question, however, nothing new. At the meeting, Spain would have recalled that it was in favour of the gradual transition to qualified majority voting, as proposed by the European Commission (see EUROPE 12172/22), while Luxembourg, the Czech Republic and Hungary would have reiterated their strong opposition. (Original version in French by Marion Fontana)