The Deputy will be aware that the Commission proposal for an interim Digital Service Tax, which would impose a 3% levy on the turnover of certain companies’ digital activities, failed to find agreement among Member States when it was discussed at ECOFIN in March this year. The focus of the debate on international tax reform has since moved to the OECD, although it continues to be discussed among Member States – both at a technical and political level.
Most recently, an update on the OECD work on tax and digitalisation was on the agenda at ECOFIN on 6 November. All Finance Ministers within the EU remain in agreement that an OECD solution would be preferable to unilateral action by the EU or by Member States.
Ireland remains committed to global tax reform and believes that global solutions are needed to ensure tax is paid by companies where value is created. That is why Ireland has been a committed participant in, and strong supporter of, tax reform efforts led by the OECD through the BEPS process.
My officials are engaged in the latest round discussions taking place at OECD this month on the many outstanding technical issues on the proposals. Ireland will continue to actively contribute to work in the area of the tax challenges of digitalisation at both OECD and EU level.