EU: Council looks to rules on taxing profits - KPMG Global
Share with your friends

EU: Council looks to rules on taxing profits in digital economy

EU: Council looks to rules on taxing profits

The EU Council announced conclusions adopted on 5 December 2017 will serve as a reference for further work on the subject of the taxation of profits in the digital economy at the EU level, including legislative proposals expected early in 2018.


Related content

As noted in today’s release, the Council has:

  • Highlighted the urgency of agreeing on a policy response at an international level
  • Called for close cooperation with the OECD and other international partners
  • Suggested that the concept of “virtual permanent establishment” be explored, together with amendments to the rules on transfer pricing and profit attribution

The OECD is currently analysing business models of the digital economy. It is preparing an interim report to the G20, scheduled for April 2018.


Read a December 2017 report prepared by KPMG’s EU Tax Centre

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


Request for proposal