S&D’s push to bring global tax rules up to speed with modern economy

The Economic Committee of the European Parliament, this afternoon, voted in favour of the Tinagli report on “digital taxation and the ongoing reforms in the framework of the G20 and OECD (BEPS 2.0)*, an important building block for a fair taxation system.

Irene Tinagli, S&D MEP and author of the report, said: 

“We sent a strong message in favour of an ambitious global tax reform from the European Parliament today. To be successful, this reform must ensure that all big companies pay their fair share of tax where the value is created  and where the economic activity is taking place. With easy to implement rules we want to limit tax competition, guarantee a level playing field between companies, and also ensure that the digital multinational companies – with an active engagement and interaction with customers and users – are included.  In the international debate, the European Union and the member states should speak with one voice. Our citizens demand tax justice and their call can no longer wait.”

Jonás Fernández, S&D MEP and spokesperson on economic affairs said:

”18 % is the minimum effective tax rate we Socialists and Democrats want to make a reality. A minimum effective tax rate is key to ending unhealthy tax competition between countries, which enables big multinationals to get away with paying almost zero taxes and deprives public coffers of much needed revenue. It’s time we bring tax law into the digital age.”

Note to the editor:

*International negotiations to address Tax Challenges Arising from the Digitalization of the Economy or ‘BEPS 2.0’ were launched at the end of January 2019 by the Inclusive Framework (over 130 countries cooperating on corporate income tax) with the support of the OECD. This work is also to be endorsed by G20 by the end of 2020 and aims at finding a unified approach to reallocate taxing rights and redefine tax presence (new nexus) in a first Pillar. A second Pillar aims at defining a minimum level of effective taxation through a global anti-base erosion tax.