Pardon Our Dust
We recently launched this new site and are still in the process of updating some of our archived content. Some details of this article may be incomplete, links may be broken, and other elements may not display properly yet. We appreciate your patience and understanding.
|The European Commission recently proposed a 3% tax on turnover for companies with EU digital revenues over €50 million and total global revenues over €750 million.
About 50% of the affected companies would be American.
This is an attempt by the EU to combat base erosion and profit shifting by digital companies that often don’t have a physical presence in many jurisdictions. Many of these companies allocate income to low-tax jurisdictions to lower their effective tax rates, making it difficult for traditional businesses to compete.
|The topic is expected to be discussed at length at the next 35-nation Organization for Economic Cooperation and Development (OECD) summit in June 2018.
Learn more about the proposed EU-digital tax and more in the full Tax Policy Update from McGuireWoods Consulting.