09-01-2023 17:00
Potential Distortions of the Single Market due to Personal Income Tax
On 09 January 2023, from 17:00 to 18:30, the FISC Subcommittee hosted a public hearing on "Potential Distortions of the Single Market due to Personal Income Tax: challenges for SMEs and risks of harmful tax competition". The transformation of the way how we work through digitalization and globalization has been accelerated during the COVID19 pandemic and has led to a significant increase of remote working. These developments have also created new challenges in the area taxation.
Companies with employees from neighbouring countries are faced with the question of how cross-border workers are taxed when they telework, implying risks of double taxation and an increased administrative burden. Meanwhile, there are growing concerns that governments could take advantage of the transformation of the world of work by introducing preferential tax regimes to attract remote workers or so-called 'digital nomads', which could eventually lead to a new form of harmful tax competition.
The experts invited to this hearing were invited to discuss the potential distortions of the Single Market due to personal income tax that arise in this context. They discussed the new challenges in this area for SMEs as well as the risks of harmful tax competition and discuss possible solutions at an EU and international level.
- Webstreaming / Recording of the meeting
- Draft programme (PDF - 118 KB)
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Mr Achim Pross, Acting Deputy Director, OECD Centre for Tax Policy and Administration
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Ms Sarah Godar, Researcher, EU Tax Observatory, co-author of the report on "New Forms of Tax Competition: An Empirical Investigation”
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Prof. Franco Roccatagliata, Visiting Professor, European Legal Studies Department, College of Europe
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Mr Krister Andersson, rapporteur for the EESC Opinion on ‘Taxation of cross-border teleworkers and their employers’ and former Chair of Business Europe's Tax Policy Working Group
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Background document provided by the European Parliamentary Research Service (EPRS)