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Compromise on the EU digital tax in Europe failed

The introduction of an Online advertising tax to the digital giant in Europe failed due to the resistance of some EU Finance Ministers. Now it will search for a global solution.

For Google and co. is the good news: The Internet corporations that remain of a Europe-wide digital tax for the foreseeable future, be spared. This is not surprising, because countries such as Sweden, where the music-streaming service Spotify is at home, or with Ireland, where Facebook has its European headquarters, is to not make a special tax for Internet companies.

Olaf Scholz, and Bruno Le Maire could not prevail with its proposal.

Denmark and Finland are also against it - and tax issues have to be decided in the EU to unanimously. Austria's Finance Minister, Hartwig Löger is disappointed: "It is a pity, from my point of view that here in Europe we are able to have a common basis in the area." It was a sad hour for Europe. "I agreed with Bruno Le Maire, and Olaf Scholz, the exchange is still bilateral, as we can put here here for more steps, so that at least a strong line of Europe in this global discussion."

France Also wants to continue to

Because of the already stripped down German-French compromise proposal of the two Ministers of Finance of Le Maire, and Scholz is the first - and perhaps permanently - from the table. Le Maire speaks of a missed opportunity, "but we are convinced that we now have to make more. And France will work resolutely for a new tax system that is fair and efficient."

Paris and Berlin, had a Europe-wide digital tax of three per cent on Online revenue starting in 2021 proposed, if at the international level, including the United States, no agreement has been achieved.

solutions on a global ...

European Finance Ministers now want to try to find this year in a joint Position for a far-reaching tax reform. Federal Minister of Finance, Scholz sees a good chance: "We are currently working on set in the circle of the G7, the G20 and the OECD to secure a tax for the digital economy and a global minimum tax, because we expect the end of the year with great progress. It is very likely that we will have in the summer of 2020 within the OECD to reach agreement."

... or national level, search for

at the same time, several EU plan States the introduction of national digital tax in France, for example, or Spain and Austria. The United States is threatening a complaint with the world trade organisation, WTO, and criticize European digital control for a multi-national US corporations as "highly discriminatory". Companies like Facebook, Google, or Amazon to pay taxes in Europe currently, as they have in many countries no branches.

The European opposition to a digital levy to fear new trade conflicts, because the principle of sales taxation could also be applied to other industries expanded. This would potentially result in the German car manufacturer will have to pay their taxes, where they sell their vehicles and not where they produce.

EU digital tax for the time being, off the table
Stephan Over the river, SWR, Brussels
12.03.2019 16:49 PM

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