Author: Paul Verhaeghe
- On 5 December 2017 the Council of the European Union adopted several decisions of which two relate to taxing digital activities.
The conclusions on taxation of the digital economy will serve in the Council’s view both as the EU’s contribution to discussions at international level and as a reference for further work at EU level. The text highlights the urgency of agreeing on a policy response at international level, and calls for close cooperation with the OECD and other international partners. It suggests that a concept of ‘virtual permanent establishment’ be explored, together with amendments to the rules on transfer pricing and profit attribution.