Do We Need a Digital Turnover Tax?
In March the European Commission announced a proposal for a “Digital Services Tax” (DST) to be levied on the turnover of “digital” businesses. Governments would impose a DST at a rate of 3 per cent on revenues from “digital services” on companies with revenue of at least €50 million in the EU and €750 million worldwide. Inspired by the Commission’s proposals, a number of countries around the world are proposing similar taxes on digital businesses whose operating models, they say, threaten their tax base and place bricks and mortar businesses at an unfair disadvantage. The UK has announced that it intends to implement a 2 per cent turnover tax on U.S. tech giants that it says will raise $1.9 billion. Similar proposals are now emerging from countries in the Asia-Pacific, including India and South Korea, and from countries in Central and South America.
Are digital taxes the right response to the particular business models of businesses that make use of digital platform? In an economy that is becoming more digital are digital businesses all that different?
Places at this event are limited. If you would like to attend then please contact: Paul MacDonnell