Corporate taxation of a significant digital presence
01020304
With the European Parliament.
Last active 13 Dec 2018
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What this bill does
In plain terms: what it changes and who it affects.
This proposal lets EU countries tax digital businesses with significant online activity there, even without a physical presence.
Who it affects
It affects digital businesses supplying online services across borders, including EU companies and some non-EU companies. It also affects users only indirectly through location data used for tax allocation.
Core of the proposal
- Creates a corporate tax permanent establishment based on a significant digital presence.
- Triggers apply above €7 million revenue, 100,000 users, or 3,000 business contracts in a Member State.
- Attributes profits using functions, assets, risks, and digital activities involving users, data, content, and advertising.
- Limits user data collection to Member State location data, without identifying the user.
Key provisions
- Takes effect
- The Directive enters into force twenty days after Official Journal publication and applies from 1 January 2020 for tax periods beginning then.
- Transitional law
- Member States must transpose by 31 December 2019 and apply the rules to tax periods beginning on or after 1 January 2020.
Latest update
26 May 2026The most recent development in this bill's progress.
Moved to European Parliament
Documents
3 recentSourcesOEIL