Details on taxation of the digital economy : Luxembourg’s position

The question of taxation of the digital economy, better known to the general public under its media name of “taxation of GAFA (Google, Apple, Facebook, Amazon)”, gives rise to intense multilateral talks : G20, OECD, European Union

Whilst a consensus seems to be emerging regarding the need to adapt international, European and national tax rules to ensure a better division of the tax base between states, the stakeholders are still a long way from an agreement on how to reach this objective.

Faced with the solution proposed by France for a new tax on sales, which is supported by certain European partners, but which convinces neither the United States nor certain member states (notably Ireland, Holland, Luxembourg and Malta), Luxembourg wanted to take back control at the opening of the European summit in Brussels on Thursday evening.

The Prime Minister of the Grand Duchy, Mr Xavier Bettel, expressed the desire for a collective study within the European Union, following the conclusion of the OECD’s work, expected in Spring 2018.

RBB Business advisors, who have been advising innovative companies in the ICT sector for more than 30 years through its locations in France, in Luxembourg and with its international network, is actively following the ongoing work on the taxation of the digital economy and will communicate regularly on these issues.