Press Releases S&Ds score success for effective minimum tax rate as game changer for tax justice

S&Ds score success for effective minimum tax rate as game changer for tax justice

Brussels, 23/03/21
S&D Group Press Release
S&Ds score success for effective minimum tax rate as game changer for tax justice
Today, the economic and monetary affairs committee adopts a report on digital taxation, which for the first time endorses the long-standing S&D Group’s demand for a minimum effective corporate tax rate. Socialists and Democrats are spearheading the fight for tax justice and continue to push for tax rules which ensure that everyone contributes their fair share, also within the framework of the OECD negotiations.

Speaking after the vote, Niels Fuglsang, S&D MEP and responsible for digital taxation, said:

“Today for the first time, a cross-party coalition backed our demand for a minimum effective tax rate. By putting a floor to tax competition, a fair minimum effective tax rate would be a real game changer for tax justice. In recent years, the effective tax rates of big tech companies have sharply dropped and hit the all-time low of 9.5%, while SMEs pay around 23% in the EU. Ordinary citizens must not be left to pick up the tax bill of rich and powerful big tech companies. Today, the European Parliament is speaking with one voice to defend an ambitious international reform on digital taxation, when EU countries could not agree to jointly defend the Union’s interests.”

Aurore Lalucq, S&D MEP and spokesperson on tax matters, said:

“The Socialists and Democrats are pushing for a minimum effective tax rate of 18 % to out a break on tax competition. As digital value creation does not require a physical presence, a principle on which our current laws are based, a minimum tax rate will be a big step towards better dealing with the digitisation of the economy.

“But one thing is clear: we want a solution at G20/OECD level, but if no international agreement can be reached, the EU must be willing to act alone. Our citizens demand tax justice. The Socialists and Democrats defend the future proposal for a Digital Levy that must become a new EU own resources and contribute to financing the post Covid-19 recovery  in the framework of Next Generation EU. ”

Note to the editor:
The ongoing reforms in the framework of the G20 and OECD aim to regulate where and how much tax companies pay, thereby bringing tax laws into the digital age, limiting tax competition and ensuring a level playing field between countries and companies.

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