EBF advisor: Roger Kaiser
Publication date: 06 March 2019
Digital taxation is a relevant issue in the context of the current economic environment and has been included in the work of the OECD/G2O Inclusive Framework on the BEPS project since its elaboration in 2013. In its comments on the OECD consultation on digital taxation, the EBF supports the continuing efforts of the OECD in addressing this topic. We agree on the need to revisit the challenges that arise from digitalisation in the current international taxation framework and to adapt the rules that would apply in an international level, allowing jurisdictions to tax in a fair and efficient manner the profits that derive from both “old” and “new” business models.
The existing corporate tax framework adequately captures profits earned by financial institutions, irrespectively of the specific activities through which they are generated. Any elaboration in the field of the taxation of the Digital Economy should focus on value creation that is not captured by the current tax framework. The EBF takes the view that the project launched by the OECD on the taxation of new types of business models should be limited to having a better understanding of companies with highly digitalised business models, where the traditional principles of value creation and profit allocation do not apply.