Digital tax in trouble
Negotiations led by the OECD on international tax agreements for the digital economy are in a difficult phase. As mostly American company’s benefit from the data economy the tax will reallocate revenues from the US to the EU. The United States has withdrawn from international talks this week while European countries push ahead with the tax, with or even without the EU coordination. Moreover, it does not help that all international tax agreements still date from the time of the brick factories dealing with income taxes rather than digital turnover taxes.