15 March 2018

Digital tax policy disruption: Europe looks increasingly ready to go it alone

A new EY report discusses how two multilateral organizations — the European Commission (EC) and the Organisation for Economic Co-operation and Development (OECD) — have been simultaneously studying options and recommendations for potential future tax regimes that would address the challenges of taxing digitalized businesses. The EC appears poised to assert itself with a set of new policies aimed at correcting what it views as a mismatch between where taxation of profit currently takes place and where (and how) value is created by certain digital activities. This EY report studies the proposals in more detail, setting out the EC’s justifications for action, and highlighting some of the policy and business challenges related to such approaches.

Document ID: 2018-5420