At a meeting of the Economic and Financial Affairs Council (ECOFIN) last week, Ministers underlined their continued support for the ongoing OECD negotiations on the tax challenges arising from the digitalisation of the economy, which are aimed at achieving a global and consensus-based solution by mid-2021.

The Ministers also confirmed their readiness to examine solutions for the EU to address the tax challenges arising from digitalisation, in the event of no progress being made at G20/OECD level.

The Commission confirmed that it is working on a legislative proposal for a ‘digital levy’, which will be designed as a source of additional own resources for the EU. It highlighted that this would be a separate instrument which should not be linked with the corporate tax rules that are being negotiated in the G20/OECD.