According to press reports, EU finance ministers are to hold informal discussions next week in Estonia on proposals to introduce the concept of ‘virtual’ permanent establishments, establishing a taxable presence for multinational companies in the countries in which they operate. The object would be to tax these companies in the countries where value is created, rather than on the basis of tax residency rules.
Another ambitious proposal put forward for discussion by Bruno Le Maire, the French finance minister, will seek to introduce an ‘equalisation tax’ for large tech companies that would collect levies based on national turnover.
According to press reports, EU finance ministers are to hold informal discussions next week in Estonia on proposals to introduce the concept of ‘virtual’ permanent establishments, establishing a taxable presence for multinational companies in the countries in which they operate. The object would be to tax these companies in the countries where value is created, rather than on the basis of tax residency rules.
Another ambitious proposal put forward for discussion by Bruno Le Maire, the French finance minister, will seek to introduce an ‘equalisation tax’ for large tech companies that would collect levies based on national turnover.
