Innovation and digital – FEPS Post Summit Briefing: European Council, 28 June 2018

The Council’s commitment to the fights against tax avoidance, evasion and fraud at global level […]

The Council’s commitment to the fights against tax avoidance, evasion and fraud at global level merits a positive mention. In line with the agreement that Chancellor Merkel and President Macron reached in Meseberg last month, the Council decided to take forward Moscovici’s proposals of a digital tax, which is likely to come to an agreement in early 2019. The Commission’s plan to introduce a 3% tax on corporate turnover from digital advertising and online intermediation services certainly represents a positive step to make US-based digital giants pay their fair share to the European economy. It is also the right move into the direction of collecting taxes where profits are made, i.e. where companies have significant interactions with users through digital channels.

Nonetheless, two risks are evident here. First, progress towards a digital tax should not divert the attention from what matters most, namely a modernisation and reform of the entire corporate tax system in Europe. Member states should rather commit to the introduction of a common corporate tax base (CCTB) and common consolidated corporate tax base (CCCTB), as the priority should be on addressing tax competition and taxing fairly all giants, not only the digital ones. Second, despite the rather modern design of the digital tax put forward by the Commission, it is still not clear how it will be ensured that it actually impacts big digital companies rather than their clients, users and SMEs which make use if their services.

Read the full briefing

Find all related publications
Publications
21/11/2022

The EU and North Africa: Towards a just Twin Transition?

In an era marked by a deficiency in sustainable growth and a profusion of novel […]
08/11/2022

Building resilient democracies

Challenges and solutions across the globe
23/10/2022

The EU and gender equality

FEPS Primers Series - Agnes Hubert
23/10/2022

The progressive potential of the EU

FEPS Primers Series - Richard Corbett
Find all related news
News
15/11/2022

FEPS delegation at COP27

FEPS delegation was present at COP27, with the strategic objectives of mobilizing climate finance for […]
20/10/2022

Europe’s largest Gen Z-focused research ever conducted

The Foundation for European Progressive Studies (FEPS) and ThinkYoung have conducted, over 3 years, Europe’s […]
18/10/2022

Open letter to call for a deep reform of the EU fiscal rules

FEPS cosigned an open letter to EU leaders calling for them to address the underlying structural […]
23/09/2022

FEPS President in the United Nations General Assembly

During the UNGA 77 week in New York, FEPS is expanding its global partnership. Among […]
Find all related in the media
In the media

El PSC se reunirá de nuevo con el Govern el miércoles por los Presupuestos

by EuropaPress 24/11/2022
EuropaPress echoes the 'Twin Transition' event in Barcelona, organized by FEPS and Fundació Campalans, with the participation of Salvador Illa and FEPS President Maria João Rodrigues.

A baloldal főutcája

by Népszava 21/11/2022
Article by FEPS Secretary General László Andor on the state of social democracy after the PES congress - “The main street of the left”

La doble transición verde y digital como arma contra los depredadores de la energía

by Crónica Global 18/11/2022
Article by Pau Solanilla, Director of Fundació Rafael Campalans, ahead of the FEPS-Campalans event 'Figuring out the Twin Transition'

El reto de las Smart Cities, combinar digitalización y sostenibilidad

by ABC 18/11/2022
Article by Pau Solanilla, Director of Fundació Rafael Campalans, ahead of the FEPS-Campalans event 'Figuring out the Twin Transition'