Digital companies such as Google, Amazon or Facebook, whose business model does not require any physical presence in a certain location, benefit from an optimum use of tax loopholes and national tax advantages and pay minimal taxes on their enormous sales. Their contribution to community funding is therefore extremely low.
Online Event: Taxing the Digital Economy: Opportunities and Consequences
German Economic Institute (IW)
Digital companies such as Google, Amazon or Facebook, whose business model does not require any physical presence in a certain location, benefit from an optimum use of tax loopholes and national tax advantages and pay minimal taxes on their enormous sales. Their contribution to community funding is therefore extremely low.
Since 2012, the OECD has been working on a new taxation system to combat this undercutting “race to the bottom”, which is deliberately promoted by some countries, as well as the associated tax avoidance strategies. However, concrete proposals are not expected before mid-2021.
In 2018, the European Commission presented its own legislative proposals on the taxation of the digital economy, for which it received support from the European Parliament. But the EU member states have yet not been able to reach an agreement in the Council. As a consequence, various member states have taken action and introduced their own national regulations on a “digital tax”.
Why does taxing the digital economy seem so difficult? What pitfalls should be considered and what solutions are currently on the negotiating table?
The German Economic Institute (IW) and the Hanns-Seidel-Foundation's European Office have the pleasure of inviting you to join our expert’s discussion on these highly topical issues.
Distinguished speakers include:
- Markus FERBER, MEP, Coordinator of the EPP Group in the Committee on Economic and Monetary Affairs of the European Parliament; Chairman of the Hanns Seidel Foundation
- Dr. Tobias HENTZE, Senior Economist for Financial Policy and Tax Policy, German Economic Institute (IW), Cologne
- MDg Martin KREIENBAUM, Head of the Department for International Tax Law and EU Tax Harmonization in the Federal Ministry of Finance, Berlin and Chair of OECD’s Committee on Fiscal Affairs (CFA)
Moderation: Sandra PARTHIE, German Economic Institute, Head of Brussels Office
The event will take place online (Zoom Webinar) on Wednesday, 10 February 2021, from 2.00 pm to 3.00 pm. Conference languages are German and English (with simultaneous interpretation). Please find the programme attached.
We look forward to an exciting discussion.
Taxing the Digital Economy: Opportunities and Consequences
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