Activities of Lídia PEREIRA related to 2021/2010(INI)
Plenary speeches (1)
Digital taxation: OECD negotiations, tax residency of digital companies and a possible European Digital Tax (debate)
Amendments (22)
Amendment 7 #
Motion for a resolution
Citation 5 a (new)
Citation 5 a (new)
— having regard to the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 19 February 2020 entitled “Shaping Europe’s digital future” (COM/2020/67),
Amendment 12 #
Motion for a resolution
Citation 15 a (new)
Citation 15 a (new)
— having regard the OECD/G20 Base Erosion and Profit Shifting Project Economic Impact Assessment on Tax Challenges Arising from Digitalisation publish in October 2020,
Amendment 32 #
Motion for a resolution
Recital F a (new)
Recital F a (new)
F a. whereas uncoordinated and distinct Digital Service Taxes, introduced by Member States, with different taxation rules and criteria, increases fragmentation within the European Single Market, creates more tax uncertainty and have less efficiency when compared with a common solution on the European level;
Amendment 33 #
Motion for a resolution
Recital F b (new)
Recital F b (new)
F b. whereas measures taken unilaterally by the Member States are susceptible to increase international trade disputes, which can affect both digital and non-digital businesses within the European Single Market;
Amendment 39 #
Motion for a resolution
Recital I a (new)
Recital I a (new)
I a. whereas digital businesses rely heavily on intangible assets, particularly through the use and monetisation of user data, to create content, and this creation of value is not captured by the current tax systems; whereas this phenomena misaligns the place of value creation with the place of taxation;
Amendment 42 #
Motion for a resolution
Recital I b (new)
Recital I b (new)
I b. whereas the lack of an international agreement or an European regulation on digital taxation is an obstacle for a more competitive and growth friendly business environment within the Digital Single Market;
Amendment 46 #
Motion for a resolution
Recital I c (new)
Recital I c (new)
I c. whereas the severe economic crisis that the European Union is facing require modern and intelligent tax policies that allow Member States to collect, in a more efficient and effective way, taxes due for activities pursued within the Single Market;
Amendment 55 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Notes that the current rules date back to the early 20th century, and are mainly based on physical presence; points out that digitalised companies can engage in significant business activities in a jurisdiction without physical presence there, and therefore taxes paid in one jurisdiction no longer reflect the value and profits created there; regrets that the traditional concept of permanent establishment fails to cover the new aspects of digital businesses, and underlines the need to define virtual permanent establishment, bearing in mind where value is captured; stresses that users of online platforms and consumers of digital services cannot be shifted outside a jurisdiction in the same way as capital and labour, and should therefore be the basis for the definition of a new tax nexus in order to provide an effective remedy against aggressive planning and tax avoidance;
Amendment 66 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Regrets the shortcomings of the international tax system, which is unfit for properly addressing the challenges of globalisation and digitalisation; highlights the need for the recognition of user participation as source of taxable value and calls for an international agreement aiming for a fair and effective tax system;
Amendment 74 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Highlights the need to address the under-taxation of the digital economy, when compared to the traditional economy, while ensuring a fair distribution of taxing rights among all countries where the value creation of multinational digital companies takes place;
Amendment 92 #
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4 a. Recognizes the rapid digitalisation of most economic sectors and the need for a future-proof tax system, that does not ring-fence the digital economy, but ensures a fair distribution of revenues across the different countries where value is created;
Amendment 94 #
Motion for a resolution
Paragraph 4 b (new)
Paragraph 4 b (new)
4 b. Notes the importance in distinguishing the role of both taxation and regulation, and that future digital tax policies should not be formulated to correct deficiencies in the digital economy, such as rents from monopoly power over information, being regulatory measures more appropriate instead;
Amendment 136 #
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9 a. Recognizes the negative effects of international trade disputes, and regrets any shortfalls that might occur to other economic sectors due to retaliations that would not occur under an international agreement;
Amendment 142 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Regrets that the failure of the G20/OECD IF to find a solution in October 2020 will prolong the under-taxation of the digital economy; stresses that the COVID 19 pandemic has largely benefited digital businesses, mostly multinational digital companies that were able to scale their operations in minimum costs, and accelerated the transition to a digital economy, thereby re-emphasising the need to reform the current tax system in order to ensure a fair contribution from the digital economy;
Amendment 161 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Insists therefore that, regardless of the progress of the negotiations at the G20/OECD IF, the EU should stand ready to roll out its own solutions for taxing the digital economy by the end of 2021; calls on the Commission to present proposals by June 2021, while anticipating their compatibility with the reform by the G20/OECD IF to be agreed on; stresses the need to create a level playing field for providers of traditional services and digital services in the EU by ensuring that the latter are taxed at an adequate rate; invites the Commission to consider in particular introducing a European Digital Services Tax as a necessary first stepif a future international agreement is reached under the OECD/G20 IF, these European solutions should only be lifted immediately before the international implementation;
Amendment 163 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11 a. Emphasises that EU digital companies when being subjected to existing European corporate taxes, as their headquarters is located in a EU Member State, are in disadvantage when compared to foreign companies that although having operations with European users, do not have a “physical presence” in any Member State, and therefore are exempt from the corporate taxes; Stresses the need to create a level playing field for providers of traditional services and digital services in the EU by ensuring that the latter are taxed at an adequate rate; invites the Commission to consider in particular introducing a European Digital Services Tax as a necessary first step;
Amendment 167 #
Motion for a resolution
Paragraph 11 b (new)
Paragraph 11 b (new)
11 b. Stresses that any European Digital Services Tax must avoid unnecessary increases in compliance costs, providing clear definitions of taxable revenues and transparent provisions that are simple to abide and enforce, promoting legal and regulatory certainty; these must also include straightforward thresholds on the country-by-country economic revenue and user-based value creation to determine taxing rights, taking into consideration the size of each Member State market;
Amendment 168 #
Motion for a resolution
Paragraph 11 c (new)
Paragraph 11 c (new)
11 c. Calls for the adoption of proportionate rules to evade undermining SMEs, start-ups and companies that are engaged in the process of digitalising their businesses, as any further increase in their tax rates may stifle innovation and entrepreneurship; stresses that a growth-friendly tax policy aiming to strengthen the international competitiveness of the single market is needed;
Amendment 181 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Understands that some Member States consider the taxation of digital economy an urgent issue and have therefore introduced digital services taxes at national level; recalls that these national measures should be phased out once a multilateral solution is found; calls on Member States to refrain from introducing national solutions unilaterally, as they create a risk of fragmentation ofand tax uncertainty within the single market; recalls that although taxation is primarily a Member State competence, they must exercise it in coherence with the common principles of EU law in order to ensure coherence between national frameworks, thereby allowing for fair competition and avoiding a negative impact on the overall coherence of EU taxation principles;
Amendment 204 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13 a. Calls on the Member States to deliver on the Commission’s related proposals and to relaunch a high level political dialogue, within the Council, to guarantee a swift and effective decision- making process regarding digital taxation within the Single Market, regardless of the outcome of international negotiations;
Amendment 208 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Notes the Commission inception impact assessment on a Digital Levy of 14 January 2021; calls on the Commission to carefully assess how the scope, definition and segmentation of digital activities, transactions, services or companies will be in line with international efforts to find a global solution; acknowledges the three tax policy options mentioned in the inception impact assessment, and asks for a detailed assessment on the impacts each option would have both in the single market and any possible trade retaliations from other economic actors;
Amendment 210 #
14 a. Calls on the Commission to include in the impact assessment the impact a Digital Levy would have on the EU’s digital agenda, and to present a detailed plan to mitigate possible international trade disputes from the adoption of a European Digital Services Tax, and the possible spill over effects into other economic sectors;