Following the release of the European Commission Communication on a fair and efficient tax system in the European Union for the Digital Single Market, BusinessEurope Director General Markus J. Beyrer made the following comment: “BusinessEurope supports governments and businesses working together to ensure that international tax agreements remain fit for purpose as the global economy and technology evolve, and our members continue to be actively engaged in the development of the global corporate tax system through the OECD’s BEPS (Base Erosion and Profit Shifting) Project.

We agree with the Commission analysis regarding the rapid digitalisation of the global economy, which underlines the importance of Europe ensuring a competitive business environment to support the take-up and exploitation of digital technologies for the whole economy and society.

Any initiatives regarding digital taxation must both respect members states’ competences to set their own tax policies, and be developed on the basis of global taxation principles in order to protect European companies’ competitiveness and to guarantee a global level playing field.

We are particularly concerned by proposals to develop a turnover tax, which would violate the long-standing international principle of taxing corporate profits and could risk undermining the growth prospects for businesses, particularly those employing innovative digital technologies, which may have considerable turnover but are yet to reach profitability.”

Source: BusinessEurope

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