Opinion Factsheet  

Taxation of the digital economy

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Opinion Number: CDR 2748/2018
Rapporteur: VANRAES Jean-Luc
Commission: ECON
Status: Adopted
Date: 06/12/2018
 
•highlight views and concerns of LRAs with regards to this topic
•continue the work stream with the COR's initial opinion on this topic on CCCTB by Jean-Luc Vanraes, adopted in 2015
•where possible influence the EP's work in this field
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The EP took over the request for a sunset-clause and amended Recital 9 with the same objectif as the CoR.

the council has not zet adopted the proposal.
THE EUROPEAN COMMITTEE OF THE REGIONS



 regrets that some companies, especially those that mainly operate in the digital economy, ultimately pay too little tax;

 considers that the existing tax systems are no longer suited to the current economic context of globalisation, mobility, digital technologies, new business models and complex business structures;

 welcomes the Commission's submission of the digital tax initiatives, giving further momentum to international discussions by providing a clear example of how the current tax principles could be transformed;

 believes that the solution must ultimately be a global one in order to better harness the benefits of globalisation, with proper global governance and global rules;

 is concerned that such a shift in taxation could, however, benefit larger countries with many consumers, where the companies concerned can deduct their losses from their corporate income tax base, at the expense of smaller exporting economies. The CoR underlines that any solution to the taxation of digital business models has to lead to a fair and equal economic result for all economies in the EU;

 regrets that there is no sunset clause or other mechanism ensuring that the interim tax measure is withdrawn when a longer-term solution is found;

 urges Member States to share the digital services tax proportionally with the local and regional authorities in proportion to their share of corporate taxation in a country.