Following the release of the European Commission proposals on taxation of the digital economy, BusinessEurope Director General Markus J. Beyrer made the following comment: “As the global economy and technology rapidly evolve, it is essential that governments and businesses work together to develop an efficient tax framework that is embedded in a competitive business environment. Our members continue to be actively engaged in the development of the global corporate tax system through the OECD’s Base Erosion and Profit Shifting Project. However, the proposals, particularly if pursued unilaterally by the EU, could risk reducing our ability to build world-leading digital companies on our continent. We need a global level playing field and agreement at international level through the OECD, before implementation at EU level.”

On the common system of a digital services tax on revenues resulting from the supply of certain digital services: “We are very concerned about the proposal to install a digital services tax on companies’ revenues resulting from the supply of certain digital services. Implementing this proposal would mean a violation of the long-standing international principle of taxing corporate profits. In addition, it is very likely that such a tax may be passed on to consumers, including European businesses, across many sectors, making access to digital goods and services more expensive.”

Source: BusinessEurope

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