The European Commission has published its latest tax trends data for Europe. The data shows that in 2018, tax revenues as percentage of GDP increased slightly in the EU 27 up to 40.2%. Revenues remained almost equally distributed among indirect taxes…
European Commission
Commission publishes latest taxation trends in the EU report
The European Commission has published its latest tax trends data for Europe. The data shows that in 2018, tax revenues as percentage of GDP increased slightly in the EU 27 up to 40.2%. Revenues remained almost equally distributed among indirect taxes, direct taxes and social contributions. The distribution of revenues by tax base (consumption, labour and capital) remained stable compared with previous years (around 52% from labour, 28% from consumption and 20% from capital).
Council
Member states gave the final green light to DAC 6 deferral.
An agreement on the VAT e-commerce deferrals was reached in July, as the European Parliament has now provided its non-binding opinion.
MEP Questions and Answers
Commission says excessive tax competition in the EU distorts Single Market
Question by MEP Oscar Lancini (ID/Italy)
Reply by Commissioner Gentiloni
Commission “warmly welcomes” European Parliament’s calls for CCCTB, DST, FTT, and green taxes as own resources
Question by MEP Bogdan Rzońca (ECR/Poland)
Reply by Commissioner Gentiloni
Commission gives further details on its 15 July tax package
Question by MEP Marek Belka (S&D/Poland)
Reply by Commissioner Gentiloni
International Developments
New blow to OECD negotiations as US walks out of the table
The US has proposed a halt from the OECD negotiations on international tax reforms, and withdrawn from talks with the EU on taxing the digital economy. The move comes soon after the US declared its intention to investigate several jurisdictions’ unilateral digital tax regimes.
This major setback to the negotiations puts in danger the negotiating partners’ aspirations to reach an agreement this year, although the OECD stated in response to the US move that work must continue with the view of a 2020 agreement.
French finance minister called the US move a “provocation”, whilst the EU reacted by re-iterating, through Commissioner Gentiloni, its intention to move ahead with unilateral digital tax reforms if the OECD’s negotiations fail to deliver. Executive Vice-President Vestager, for her part, insisted that the EU would “really, really prefer a global consensus” but that if this is not possible, Europe will proceed alone “if we need to”.
ICRICT publishes report on COVID recovery and taxation
The Independent Commission for the reform of International Corporate Taxation (ICRICT) has published a new report with tax recommendations for post-COVID recovery.
The recommendations include higher tax rates in “oligopolised sectors”, a global minimum effective corporate tax rate of 25% and public country by country reporting (CBCR).
OECD releases global tax reporting framework for digital platforms in the sharing and gig economy
The OECD has released a new global tax reporting framework, the Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy (MRDP).
Under the MRDP, digital platforms are required to collect information on the income realised by those offering accommodation, transport and personal services through platforms and to report the information to tax authorities.
European Parliament
European Parliament adopts position on VAT e-commerce COVID deferrals
On 8 July, the European Parliament Plenary adopted its non-binding position on the Commission’s proposed deferrals to the VAT e-commerce provisions in light of COVID.
The Parliament position passed with 494 votes in favour, 165 against and 35 abstentions. With the Parliament opinion now adopted, the provisions can become EU law as member states already gave their green light earlier.
Other News
Council publishes overview of all member states’ tax regimes examined by Code of Conduct Group
