Consideration of amendments to the draft report on Digital Taxation

16-03-2021 - 18:18
Subcommittee on Tax Matters Subcommittee on Tax Matters
FISC Subcommittee © Image used under the license from Adobe Stock

On 17 March 2021, the FISC Subcommittee will consider the amendments on the draft own-initiative report on “Digital Taxation: OECD negotiations, tax residency of digital companies and a possible European digital tax”.

The objective of this report is to present the European Parliament's views ahead of the final negotiations of a global reform within the OECD/G20 Inclusive Framework which aims at creating a new basis for taxing the profits of digital companies in countries where they operate, even when they do not have a physical presence. The participating countries have committed to reach an agreement by mid-2021.

In addition, in July 2020, the European Council demanded the Commission to put forward a proposal on a digital levy in the context of reforming the system of own resources and financing the economic recovery after the COVID19-pandemic. This proposal is due by June 2021 at latest.

A total of 243 amendments were tabled to the draft report. The BUDG committee will deliver an opinion on the report, which is due to be adopted in the BUDG committee on 17 March. The vote on the committee report will take place in ECON on 23 March.