Pardon Our Dust
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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. |
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About 50% of the affected companies would be American. |
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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. |
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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.
Contacts
Radha Mohan | Lai King Lam