News: The EU creates a unified system of taxation of the digital economy

The EU creates a unified system of taxation of the digital economy

The European Commission plans to launch a single programme on taxation of companies engaged in the digital sector of economy.

The EC notes that more companies from the industry of commerce, entertainment and economy are working in the virtual space of the Internet. At the same time, compulsory contributions to the state treasury for such companies are much lower than for companies from the real sector of economy.

According to research, average income tax for digital companies in the EU countries is 10.1%, while other spheres are taxed at the rate of 23.2%.

Not all countries agree to support the tax initiative of Brussels. Small states, like Luxembourg, are trying to attract digital business with loyal tax relations (low rates, simplified control procedures, etc.). And France, Spain, Italy and Germany offer to oblige international companies to pay taxes in the countries where they make a profit.

According to the member of the European Commission for Economic and Financial Affairs, new approach to taxation of digital-companies will allow to achieve justice. After all, both the employees of such companies and the networks that they use are the European ones.

As a result of negotiations between the EU countries, it is planned to reach a common opinion on this issue. So and in no other wayit will be possible to develop an optimal, fair and favourable for all members of the EU taxation plan for Internet business. Now a lot of disagreements were revealed and the final decision was postponed until the spring of 2018.

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