On January 14, 2021, the European Commission published a roadmap to address the issue of fair taxation of the digital economy.
According to the roadmap, the initiative will be designed in a way that is consistent with the Digital Services Act package and the Commission’s digital strategy to ensuring a fair and competitive digital economy. The initiative will be compatible with the international agreement to be reached in the OECD, as well as broader international obligations.
The roadmap notes that the EU Commission will identify additional policy options, such as: a corporate income tax top-up to be applied to all companies conducting certain digital activities in the EU; a tax on revenues created by certain digital activities conducted in the EU; and a tax on digital transactions conducted business-to-business in the EU.
Comments must be received by February 11, 2021.