The current tax system does not account for digital value creation. Our proposal wants to change that.
In an interview with the professional journal Juve Steuermarkt, Pola Schneemelcher and Paul-Jasper Dittrich, Policy Fellows at the Jacques Delors Institute Berlin, report on their latest paper on the taxation of digital companies. In contrast to the tax on digital services that has already been introduced by some European member states, they propose a concept that focuses on the long-term reform of European and international corporate taxation. The experts recommend taxing the usage of the local user network at a “virtual permanent establishement“.
Read the full interview here.