Category Taxation in EU

EU Countries To Take on Multinationals

September 13, 2017 Taxation in EU

EU TaxationBRUSSELS – Several Finance Ministers from the EU have banded together to propose a new tax on the earnings of large multinational tech firms.

The Finance Ministers of France, Germany, Italy, and Spain have penned a letter calling for the European Union to take a tougher stance on multinational tech-giants and their ability to dodge taxes in Europe.

Following the letter, the topic of taxation of such businesses has been scheduled to be discussed at a joint-meeting of national Finance Ministers and EU meeting to be held soon in Estonia.

The Finance Ministers are taking objection to multinationals’ ability to carry out business and make profits from activities in one country, while diverting the profits to the low-tax jurisdictions where they are registered.

The authors of the letter are e...

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Czech Republic Delays e-Book Tax Break for EU

June 20, 2017 Taxation in EU

tax breaks on e-booksBRUSSELS – Taxpayers in the EU will not be able to enjoy a tax-break on e-books until the Czech Republic lets go of a bill it is holding hostage for its own political benefit.

Late last week tensions arose among members of the EU, as the Czech Republic blocked a bill relating the taxation of e-books, as a means of lending more weight to their demands on a separate bill on a proposed VAT pilot program.

The blocked bill is intended to allow EU member countries to introduce VAT breaks for the sale of e-books.

Currently, under EU law it is possible to reduce the rate of VAT on physical books, but the breaks are not extended to their digital counterparts, creating a divide between the taxation of physical and digital books.

The Czech Republic has blocked the bill at its last stage before imp...

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ECJ Rejects Tax Breaks on E-Books

March 8, 2017 Taxation in EU

E-book taxLUXEMBOURG – E-books cannot be sold with a discounted rate of VAT, according to the top court in Europe.

On March 7th, the European Court of Justice ruled that no member-states of the EU may apply a reduced rate of VAT on the sale of digital books, newspapers, or other publications.

According to current EU regulations, EU-member countries are allowed to apply a reduced rate of VAT on the sale of books, a tax measure which is aimed at increasing the instances of reading throughout member countries.

The reduced rates would also apply to newspapers, and other printed materials.

The Court was brought forward to interpret the rules regarding the application of VAT on books and newspapers, following a legal challenge where some EU-member states claimed that the reduction of VAT on e-books and ...

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EU Transaction tax May Still Go Ahead

January 27, 2017 Taxation in EU

Transaction tax on stocks and derivativesGENEVA – The pan-EU transaction tax may still be enacted, despite having lost momentum since its proposal nearly 5 years ago.

The long-debated and highly controversial plan to implement a multinational transaction tax in Europe is “within reach” according to the European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici.

The proposed tax would see all financial transactions conducted in participating countries taxed at 0.1 percent, if the transaction involves stocks, and 0.01 percent if the transaction involves derivatives.

The tax was first proposed in 2012, in an effort to raise funds and address the issues which are believed to have caused the global financial crisis in 2008.

The Commissioner explained that “…a deal is within reach, if we only co...

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EC Proposes Massive Tax Deductions for R&D

October 28, 2016 Taxation in EU

R&D Tax BreaksBRUSSELS – Newly proposed rules in the EU will see companies get tax breaks worth twice their R&D spending.

The European Commission has recently put forward a new proposal which would see significant tax deductions being granted to businesses involved in research and development activities in the EU.

Under the proposed new rules, any business with turnovers of over EUR 750 million, which is also a tax resident in the EU, would be eligible for a tax deduction on the full cost of their R&D spending.

Further, an extra 50 percent deduction will be made available for R&D expenses of up to EUR 20 million, with a further 25 percent on spending if spending exceeds EUR 20 million.

If a business which is a tax resident in the EU does not meet the size requirements, but opts to be part of the R&D d...

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