France, Germany punt on European digital services tax proposal

摘要

France and Germany on Tuesday issued a new proposal for a tax on internet advertisements that could serve as a potentially fatal blow to the European Commission's push to impose a digital services tax targeting U.S. companies, which the U.S. business community had branded a violation of international trade rules. EU finance ministers met on Tuesday to discuss a declaration issued by France and Germany that greatly pared down the Commission's March proposal for a 3 percent tax on a digital company's revenue if that company amassed at least 750 million euros in revenue and 50 million euros in EU revenue. The joint declaration invited the Commission and Council of the EU to "amend and focus" a "draft directive for a digital services tax on a tax base referring to advertisement, on the basis of a 3 percent tax on turnover," and to submit proposals on digital and minimum taxes to the Organization for Economic Cooperation and Development.