For several years now, the European Commission is looking for a way to pay the right taxes on technology and the web giants, and soon, thanks to the initiative of four European countries, things could change. The request for reform is led by France, which immediately joined Italy, Germany and Spain, who are calling for a new law to equalize taxes.
Currently many multinationals operating on the web use subsidiaries in countries where taxation is particularly favorable, such as Ireland and Luxembourg. This way, they pay a huge amount of taxes in the countries where commercial activities are actually conducted.
The finance ministers of the countries concerned will discuss their proposal at the end of the month, during the Digital Summit, which will be held in Tallinn, Estonia. The proposal does not seem so exaggerated, as it is a tax of between 2 and 5% of the turnover realized in each country. The proposal liked Vanessa Mock, spokeswoman for the Taxation and Customs Union, although it will serve the approval of all member states, including Ireland and Luxembourg, who will definitely have something to argue about.
What counts, according to Mock, is to follow a common approach that can protect the single market, forcing the market players to pay the right tax on profits in the country where they were generated, as is the case with traditional physical stores. We will know more about it at the end of the month, after the meeting of European finance ministers.