On Wednesday 18 December, MEPs adopted a resolution calling for ambitious international tax reform at the OECD by 479 votes to 141 with 69 abstentions. As international negotiations become more complex (see EUROPE 12385/7), on Monday the European Parliament questioned the European Commission on its strategy (see EUROPE 12392/7).
In the resolution (see EUROPE 12382/15), the European Parliament regrets the lack of a common approach (see EUROPE 12257/2) and calls on the Commission and the Member States to agree on an ambitious position, so that the EU will speak with one voice in these negotiations, and to make their position public.
While the text strongly encourages Member States to reach an agreement on digital taxation at the OECD, it also supports the Commission's commitment to propose a new European solution if an international agreement is not reached by the end of 2020.
The final text also calls on countries to agree on a minimum corporate tax rate that is "fair and sufficient to discourage profit transfers and prevent harmful tax competition".
The Greens/EFA and S&D groups tabled amendments to recommend rates of 18%, 20% and 25% respectively in the resolution - all of which were rejected by a coalition of Christian Democrat, Conservative and Liberal MEPs, to the regret of the former groups.
"We need to harmonise what is taxed and where we tax internationally, but we do not want to abolish tax competition altogether. Member States should remain free to set their tax rates at the level they desire", said German MEP Markus Ferber, on behalf of the EPP.
For Sven Giegold (Greens/EFA, Germany), the most important thing is that, for the first time, the Christian Democrats supported the call for minimum company taxation. "The fundamental commitment of the entire European Parliament to minimum taxes is an important signal in the fight against tax avoidance", he said. (Original version in French by Marion Fontana)