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Post By jimmy7
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EU Increases Taxes on Internet Giants
European finance ministers will be discussing next week amendments to regulations to increase taxes on multinational Internet companies such as Google and Amazon, European news agencies reported.
Online giants are facing growing pressure in Europe for their low taxes, but countries often have difficulty raising their rates due to existing regulations limiting taxation to countries where they are physically present.
"The current legal framework favors digital companies and deprives states of benefits," says a document from the Estonian EU presidency, prepared for the informal meeting of finance ministers in Tallinn on 15 and 16 September.
The document proposes a reform of international tax laws to change the notion of "permanent establishment" so that digital companies are taxed where they generate revenue, not just in the countries where their tax office is located.
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