On 4 March, the European Commission published a Roadmap that indicated its plans for tax policy reforms in the upcoming months and years.
In June, the Commission will publish an Action Plan to fight tax evasion and simplify taxation. This Action Plan will be accompanied by two legislative proposals:
The Action Plan itself will include indications of additional future legislation and measures. The Roadmap confirms that the Commission will look into the following:
Public consultations will be launched ahead of each legislative initiative in due course. Read more
European Commission’s Executive Vice-President Vestager has defended European countries’ plans to impose national digital taxes on large tech firms. In a Bloomberg interview, Vestager said that “I strongly applaud that (EU) member states are picking it up where we failed as a community together to do something”. Read more
Most interestingly, public consultations on both will be launched during Q1-Q2 2020. The actual proposals are still scheduled for Q2 2021.
On ETD specifically, the Commission aims to address minimum tax rates for energy products and electricity, how to use taxation to incentivise renewable energy and energy efficiency, and review the treatment of electricity and natural gas products and streamline current reductions, exemptions and subsidies for fossil fuels (including kerosene exemptions for aviation and maritime sectors).
C‑405/18: Transfer of tax residency to another EU Member State
C-75/18 & C-323/18: The special taxes levied in Hungary on the turnover of telecommunications operators undertakings in the retail trade sector are compatible with EU law
C-482/18: The system of penalties relating to the Hungarian tax on advertising is not compatible with EU law
Following their 23 February meeting in Saudi Arabia, the G20 finance ministers adopted a Communique in which they endorse the Outline of the Architecture of a Unified Approach on Pillar One as the basis for negotiations and welcome the progress on Pillar Two.
The ministers encourage further progress on both Pillars reaffirm their commitment to reach a consensus-based solution with a final report to be delivered by the end of 2020. Read more
Czech Republic may consider reducing its planned digital tax on technology companies. As it currently stands, the Czech tax is expected to be the highest in Europe.
However, the US has threatened to retaliate, saying that it unfairly targets American tech companies. Its ambassador to Prague sent letters to members of the Czech parliament’s budgetary committee calling the tax “discriminatory” and the proposed level of 7% on local revenue as “extraordinarily high.” Now the government will discuss reducing the amount to 5%. Read more