Press release on the European Commission proposals on the fair taxation of the digital economy

The European Tax Adviser Federation (ETAF) welcomes the efforts of the European Commission to find a balanced and equitable solution in the taxation of the digital economy and shares the Commission’s position that the current international tax rules do not permit a fair competition between traditional companies and digital companies. Following closely the developments around the fair taxation of the digital economy, ETAF has positioned itself by taking part in the public consultation launched by DG TAXUD in October 2017.

However, the two-step approach proposed by the European Commission does not seem appropriate from a cost-effectiveness point of view: considering the time it takes to reach an agreement on  temporary solutions, the European Commission should concentrate all its efforts on finding long-term solutions instead.

Furthermore, the global dimension of the phenomenon should be taken into account and the solution should be found within the framework of the OECD, where the European Union should absolutely play a leadership role in this process.

Commenting on the drafted proposals presented by the European Commission, ETAF President Philippe Arraou states: “We welcome the efforts and the intentions of the European Commission for addressing the issue of the taxation of the digital economy. However, we hope that all the endeavours will be concentrated to find a comprehensive long-term solution, rather than dispersed to search for a short-term one. Furthermore, we highlight the international dimension of the issue and we recommend that such a comprehensive and long-term solution shall be included in the framework of the broader OECD activity on this topic”.

ETAF press release on the proposals on the taxation of the digital economy