EU Commission Excludes Proposal on Digital Tax, Pushed by Germany, France

EU Commission Excludes Proposal on Digital Tax, Pushed by Germany, France

Facebook logo picture illustration made in Zenica, Bosnia and Herzegovina.

Ireland's finance minister poured cold water Tuesday on a new Franco-German proposal for a European tax on companies' digital revenues, saying it failed to address his concerns.

Germany especially fears damaging tariff hikes on vehicle exports to the USA and top executives are expected in Washington on Tuesday to try to appease Trump and head off a trade war.

"We invite the EU Commission and the Council first to amend and focus its draft directive for a digital services tax on a tax base referring to advertisement, on the basis of a three percent tax on turnover, and second to submit proposals in due course on taxing the digital economy and minimum taxation in line with the work of the OECD".

The tax requires the support of all 28 EU states, including small, low-tax countries like Ireland that have benefited by allowing multinationals to book profits there on digital sales to customers elsewhere in the European Union.

The setback is a blow to French President Emmanuel Macron, as his government had invested considerable political capital in the tax.

France and Germany wanted the EU states to approve the tax by March next year, prior to the European Parliament elections in May and change in the Commission, so it could take effect from the start of 2021.

In the original European Commission proposal, the tax was meant to be a temporary "quick fix" until a broader solution could be found among OECD members. The EU digital tax would apply to the German-French plans, but for only a limited period up to 2025.

Sandra Oh, Andy Samberg to co-host Globes
Oh is now riding high on the critical and ratings success of her new series, BBC America's " Killing Eve ". The ceremony, conducted by the Hollywood Foreign Press Association, will be held on January 6.

Your opinion is valuable.

France and Germany sought on Tuesday to salvage a proposed European Union tax on big digital firms including Google and Facebook by narrowing the focus to cover only companies' online advertising revenue.

US lawmaker Kevin Brady, chairman of the tax-writing Ways and Means Committee in the House of Representatives, welcomed the failure of the proposal, calling the tax a "revenue grab" aimed at an industry dominated by American firms.

Limits the tax to a 3 percent levy on online advertising revenues. "They'll say it's not enough and I can understand them", France's finance minister Bruno Le Maire said.

Finance ministers from reluctant countries didn't give their backing to the narrowed Franco-German plan at the meeting, but said they wouldn't stand in the way of further talks.

The tax would only come into force in 2021 if a plan for a global solution being negotiated at the OECD is not agreed before then.

Would you like to get published on Standard Media websites?

Related News:



Most liked

Saudi Arabia works on convincing Russian Federation to join oil cuts
If Russia does agree a cut, it would take three to four months to fully implement it, he said. Those differences persisted after Wednesday's meeting, OPEC delegates said.

Apple finally releases a case for the iPhone XR
When the iPhone XR went on sale in October this year, Apple didn't have any official case for consumers to purchase. You read Apple marketing team's description of this Clear Case below.

Tom Cruise Is Going To War With A Setting On Your TV
Cruise took time out from shooting Top Gun: Maverick to shoot the short public service announcement and posted a tweet about it. According to BBC, part of the reason is because the actor is lacking when it comes to height.

Kobe Bryant takes shot at Warriors fans 'who came out of nowhere'
He added that although James was playing a career-low 34.7 minutes, his minutes were high-usage minutes given his statistics. Because Kyle Korver in Atlanta was the bulk of the offence, and he's not a No. 1 option at all, not even close.

Trump says meeting with DPRK's top leader Kim likely early next year
He said he hopes to take a two-track approach with Tokyo on North Korea, . something he says Japanese government will agree on. Moon said that Seoul shares the same stance as Wellington in rejecting protectionism and defending free trade.

Search underway after 2 Marine aircraft crash off coast of Japan
The Marines said in a statement that Japanese search and rescue aircraft responded and were aiding in the rescue effort. The reports suggest the F/A-18 is a two-seat variant and five other crewmembers were on board the C-130.

71 per cent fall in number of flu cases
The Centers for Disease Control and Prevention recommends a yearly flu vaccine for everyone six months of age and older. Kaiser Permanente reported 10 percent of influenza samples tested positive last week for the flu.

Sean Dyche glad Burnley have already been written off
James McArthur and Andros Townsend scored the goals for Palace, as the totally outplayed Burnley throughout. The home side then took the lead, deservedly, but it came rather fortuitously.

Rocket carrying turkey, fruitcake heads to International Space Station
It's the first time that's happened since the groundbreaking launch of the company's Falcon Heavy spacecraft in February . Meanwhile, Musk tweeted that the problem was that a "grid fin hydraulic pump stalled, so Falcon landed just out to sea".

New Study Shows How Guns Are Affecting Life Expectancy For Black Americans
On average, life expectancy across the globe is steadily ticking upward-but the same can't be said for the United States. The suicide rate in 1999 was 10.5 per 100,000 deaths, while today it has risen to 14.5, the highest rate in 50 years.

Locksley tapped as Maryland's head football coach
However, after massive backlash, school president Wallace Loh overruled the decision and terminated Durkin the next day. The Crimson Tide also ranks No. 7 in both total offense (527.6 yards per game) and passing offense (325.5 ypg).

Don't Get Too Excited, But Huawei's Nova 4 Launches This Month
There's no information on the pricing and availability details for the Huawei Nova 4 just yet, so stay tuned for more updates . This makes the phone the first to have an in-display camera , and also the first to use the Infinity-O display.

Pete Davidson Talks Horrific Bullying, Suicidal Thoughts In Emotional Instagram Post
Davidson vowed, "No matter how hard the internet or anyone tries to make me kill myself, I won't". The song became Grande's first number one single on the Hot 100 and went platinum.

Facebook allowed tech firms special access to user data, documents show
MPs have released documents relating to Facebook which suggest the company deliberately suffocated rivals with its business practices.

Baby from dead donor's womb gives infertile hope
A baby has been born using a uterus transplanted from a dead donor for the first time, offering hope to those unable to conceive. Ten attempts were made - in the United States, the Czech Republic, and Turkey - before the success reported this week.