The EU Ministers discussed the new rules for the taxation of the digital economy

© RIA Novosti / Alexei Vitvitskiy fotobanka in the EU. Archival photoThe EU Ministers discussed the new rules for the taxation of the digital economy© RIA Novosti / Alexei Vitvitskiy the image Bank

The Finance and economy Ministers of EU countries during the two-day informal meeting in Tallinn (ECOFIN) discussed the upgrade of international rules for the taxation of business entities, to continue to apply for businesses using digital technology, said on Saturday the press service of Estonia’s presidency in the EU Council.

The Ministers were unanimous that the decision on taxation of the digital economy should hurry and hoped to reach consensus official Ministerial meeting in December.

«It’s important for us to reach agreement on international tax rules, which includes new models for the digital economy. They would provide equal taxation for all enterprises, regardless of their areas of activity and location. I hope that today’s discussion helped us to take a step towards finding appropriate solutions» — said the Minister of Finance of Estonia Toomas Tyniste after the informal meeting.

At the meeting it was noted that the business models of the digital economy in contrast to the traditional models of the economy often operate virtual in many countries. In the taxation of business entities international rules originate still from the premise that the occurrence of the taxable profits requires physical address of the enterprise.

This allows many businesses to avoid paying taxes, as the taxation rules have become obsolete. The participants of the discussion, the report says, believe that when you update the rules it is important to abandon requirements for physical possession or the existence of assets, and to replace the concept of virtual place of business. It also implies achieving more accurate agreements about virtual taxpayers — those who actually will pay taxes.The EU Ministers discussed the new rules for the taxation of the digital economy© RIA Novosti, Infographiste and prospects of the European Union

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