26 Amendments of Martin SCHIRDEWAN related to 2018/0073(CNS)
Amendment 47 #
Proposal for a directive
Recital 3
Recital 3
(3) That review constitutes an important element of the Digital Single Market24 , given that the Digital Single Market needs a modern and stable tax framework for the digitalised economy to stimulate innovation, tackle market fragmentation and allow all players to tap into the new market dynamics under fair and balanced conditions. _________________ 24 Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee and the Committee of the Regions 'A Digital Single Market Strategy for Europe' (COM(2015) 192 final of 6.5.2015).
Amendment 48 #
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
(3a) Digitalisation affects the whole economy with many firms using multi- channel models; thus, instead of creating special regimes for digital businesses, international tax rules should be reformed, based on a principle of neutrality between different business models, both digital and non-digital, and regardless of the extent or form of digitalisation, including multi-channel models, recognising the economic reality businesses operate in today.
Amendment 49 #
Proposal for a directive
Recital 3 b (new)
Recital 3 b (new)
(3b) In particular, this means reforming the definition of a permanent establishment to be more in line with the concept of a permanent establishment as defined in the 2010 UN model tax convention.
Amendment 53 #
Proposal for a directive
Recital 5 a (new)
Recital 5 a (new)
(5a) Notwithstanding the difficulties of reaching a global agreement, such an agreement should still be pursued with great effort. Progress on the OECD level has been slow and results have been disappointing. As called for in the European Parliament’s inquiry committee into money laundering, tax avoidance and tax evasion (PANA) and in its special committee on tax rulings and other measures similar in nature or effect (TAXE2), an empowered UN tax body should thus be installed to serve as the forum for debates and discussions on said agreement and other matters related to the international tax system.
Amendment 68 #
Proposal for a directive
Recital 7
Recital 7
(7) That interim solution should establish the common system of a digital services tax ('DST') on revenues resulting from the supply of certain digital services by certain entities. It should be an easy-to- implement measure targeting the revenues stemming from the supply of digital services, online content and the sale of goods or services which are sold via a digital interface where users contribute significantly to the process of value creation. Such factor (user value creation)s also underpins the action with respect to corporate tax rules, as described in recital (5).
Amendment 73 #
Proposal for a directive
Recital 9
Recital 9
(9) DST should be applied to revenues resulting from the provision of certain digital services only. The digital services should be ones that are largely reliant on user value creation where the difference between the place where the profits are taxed and the place where the users are established is typically greatest. It is the revenues obtained from the processing of user input that should be taxed, not the user participation in itself.
Amendment 76 #
Proposal for a directive
Recital 10
Recital 10
(10) In particular, taxable revenues should be those resulting from the provision of the following services: (i) the placing on a digital interface of advertising targeted at users of that interface; (ii) the making available of multi-sided digital interfaces which allow users to find other users and to interact with them, and which may also facilitate the provision of underlying supplies of goods or services directly between users (sometimes referred to as "intermediation" services); and (iii) the transmission of data collected about users and generated from such users' activities on digital interfaces (iv) the supply of digital content such as videos, audio or text; and (v) the sale of goods or services sold via a digital interface. If no revenues are obtained from the supply of listed activities . If no revenues are obtained from the supply of such services, there should be no DST liability. Other revenues obtained by the entity providing such services but not directly stemming from such supplies should also fall outside the scope of the tax.
Amendment 80 #
Proposal for a directive
Recital 13
Recital 13
(13) For cases involving multi-sided digital interfaces that facilitate an underlying supply of goods or services directly between users of the interface, the underlying transactions and the revenues obtained by users from those transactions should remain outsidewithin the scope of the tax. The revenues resulting from retail activities consisting in the sale of goods or services which are contracted online via the website of the supplier of such goods or services, and where the supplier does not act as an intermediary, should also be outside the scope of DST because the value creation for the retailer lies with the goods or services provided and the digital interface is only used as a means of communication. Whether a supplier is selling goods or services online on his own account or providing intermediation services would be determined by taking into account the legal and economic substance of a transaction, as reflected in the arrangements between the relevant parties. For instance, a supplier of a digital interface where third-party goods are made available could be said to provide an intermediation service (in other words, the making available of a multi-sided digital interface) where no significant inventory risks are assumed, or where it is the third party effectively setting the price of such goodswithin the scope of DST.
Amendment 83 #
Proposal for a directive
Recital 14
Recital 14
(14) Services consisting in the supply of digital content by an entity through a digital interface should be exincluded fromin the scope of the tax, regardless of whether the digital content is owned by that entity or that entity has acquired the rights to distribute it. Even if some sort of interaction between the recipients of such digital content may be allowed and therefore the supplier of such services could be seen as making available a multi-sided digital interface, it is less clear that the user plays a central role in the creation of value for the company supplying the digital content. Instead, the focus from the perspective of value creation is on the digital content itself which is supplied by the entity. Therefore the revenues obtained from such supplies should fall outside the scope of the tax.
Amendment 87 #
Proposal for a directive
Recital 15
Recital 15
(15) Digital content should be defined to mean data supplied in digital form, such as computer programmes, applications, games, music, videos or texts, irrespective of whether they are accessed through downloading or streaming, and other than the data represented by a digital interface itself. This is to capture the different forms which digital content can take when acquired by a user, which does not alter the fact that the sole or main purpose from the user's perspective is the acquisition of the digital content.
Amendment 90 #
Proposal for a directive
Recital 16
Recital 16
Amendment 96 #
Proposal for a directive
Recital 22
Recital 22
(22) Only certain entities should qualify as taxable persons for the purposes of DST, regardless of whether they are established in a Member State or in a non-Union jurisdiction. In particular, an entity should qualify as a taxable person only if it meets both of the following conditions: (i) the total amount of worldwide revenues reported by the entity for the latest complete financial year for which a financial statement is available exceeds EUR 750 000 000; and (ii): the total amount of taxable revenues obtained by the entity within the Union during that financial year exceeds EUR 50 000 000.
Amendment 99 #
Proposal for a directive
Recital 23
Recital 23
Amendment 101 #
Proposal for a directive
Recital 24
Recital 24
(24) The secondis threshold (total annual taxable revenues in the Union) should limit the application of the tax to cases where there is a significant digital footprint at Union level in relation to the type of revenues covered by DST. It should be set at Union level in order to disregard differences in market sizes which may exist within the Union.
Amendment 115 #
Proposal for a directive
Recital 35
Recital 35
(35) The taxable revenues should be equal to the total gross revenues obtained by a taxable person, net of value added tax and other similar taxes. Taxable revenues should be recognised as obtained by a taxable person at the time when they become due, regardless of whether they have actually been paid by then. DST should be chargeable in a Member State on the proportion of taxable revenues obtained by a taxable person in a tax period that is treated as obtained in that Member State, and should be calculated by applying the DST rate to that proportion. There should be a single DST rate at Union level in order to avoid distortions in the Single Market. The DST rate should be set at 35%, which achieves an appropriate balance between revenues generated by the tax and accounting for the differential DST impact for businesses with different profit margins.
Amendment 122 #
Proposal for a directive
Recital 40 a (new)
Recital 40 a (new)
(40a) Three years after .... [the date of entry into force of this Directive], the Commission should produce an evaluation report of the implementation of this Directive and its effects. In particular, the Commission should assess in this report the amount in tax paid due to the DST in each Member State and who bore the economic incidence of the tax. The Commission should present the report both to Parliament and to Council.
Amendment 129 #
(41a) With the view of increasing the resilience of the Union’s tax system further, the application of the ordinary legislative procedure (Article 114 TFEU) for legislation related to corporate income taxation should be considered,
Amendment 133 #
Proposal for a directive
Article 3 – paragraph 1 – point c a (new)
Article 3 – paragraph 1 – point c a (new)
(ca) the making available to users of content on a digital interface such as video, audio or text using a digital interface;
Amendment 135 #
Proposal for a directive
Article 3 – paragraph 1 – point c b (new)
Article 3 – paragraph 1 – point c b (new)
(cb) the sale of goods or services which are contracted online via digital interfaces.
Amendment 139 #
Proposal for a directive
Article 3 – paragraph 4 – point a
Article 3 – paragraph 4 – point a
(a) the making available of a digital interface where the sole or main purpose of making the interface available is for the entity making it available to supply digital content to users or to supply communication services to users or to supply payment services to users;
Amendment 143 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. 'Taxable person', with respect to a tax period, shall mean an entity meeting both of the following conditions:
Amendment 144 #
Proposal for a directive
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
Amendment 152 #
Proposal for a directive
Article 5 – paragraph 3 – point c a (new)
Article 5 – paragraph 3 – point c a (new)
(ca) as regards taxable revenues falling under Article 3(1)(ca), in proportion to the time the content made available to users appears on a user’s device while the device is being used in that Member State to access the digital interface in that tax period;
Amendment 153 #
Proposal for a directive
Article 5 – paragraph 3 – point c b (new)
Article 5 – paragraph 3 – point c b (new)
(cb) as regards taxable revenues falling under Article 3(1)(cb), in proportion to the sales value of the goods and services delivered to a buyer in that Member State in that tax period.
Amendment 161 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
The DST rate shall be 35%.
Amendment 175 #
Proposal for a directive
Article 23 a (new)
Article 23 a (new)
Article 23a Evaluation Report Three years after.... [the date of entry into force of this Directive], the Commission shall produce an evaluation report of the implementation of this Directive and its effects. In particular, the Commission shall assess in this report the amount in tax paid due to the DST in each Member State and who bore the economic incidence of the tax. The Commission shall present the report to both Parliament and Council.