Maltese House of Representatives

Proposal for a COUNCIL DIRECTIVE laying down rules relating to the corporate taxation of a significant digital presence

Scrutiny details

Subsidiarity deadline: 17/05/2018
Scrutiny Information

Scrutiny date: 14/05/2018

  A reasoned opinion has been sent

  Important information to exchange

No Veto

Information on parliamentary scrutiny

The House of Representatives of Malta notes that the principles of subsidiarity and proportionality become relevant where the Union and the Member States share competence in a sector in terms of the Treaty on European Union and the Treaty on the Functioning of the European Union.

The House of Representatives of Malta retains that the proposed system of a Digital Services Tax, both related to corporate taxation of a significant digital presence and on revenues resulting from the provision of certain digital services infringe the principle of subsidiarity.

The aim of the Proposals can be better achieved through long-term national solutions coordinated at an international level rather than through the proposed European short-term measures. It is believed that the suggested interim measures impinge on established fundamental tax concepts and create more issues than solutions. The Proposal impinges on fundamental tax concepts, such as that of the permanent establishment, which is a key concept in the OECD Model Tax Convention on Income and on Capital, which remains the most authoritative source used by countries when negotiating conventions with each other.

Lisbon Treaty procedures
  Reasoned opinion

16/05/2018 |

Contact points for EU matters

IPEX Correspondents:
Phone: +32 2 284 2804  Email Mr. Ian Paul Bajada
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