Finland, Sweden, Denmark express joint view on taxation

The finance ministers of Finland, Sweden and Denmark expressed a joint view on taxation of the digital economy.

The ministers took the position that both the digital and traditional economies should be taxed at the point where value is created, said a press release issued by the Ministry of Finance on Monday.

“Digitalisation is rapidly transforming our world and it will also affect businesses that we now regard as part of the traditional economy. All companies – whether new or old, national or international, greatly digitalised or not – should be taxed in the same effective and fair manner based on where value is created. We want the Nordic countries and the rest of the European Union to remain competitive in an ever more converging and digitalised world,” said Minister of Finance Petteri Orpo.

In March 2018, the European Commission issued two proposals for directives, both of which proposed special tax provisions on the digital economy. The proposals would transfer a right to levy taxes to the country in which the consumer or digital user is located.