{"id":61981,"date":"2021-09-12T17:27:34","date_gmt":"2021-09-12T15:27:34","guid":{"rendered":"https:\/\/www.thedigitalnewdeal.org\/fiscalite-du-numerique-le-match-retour\/"},"modified":"2022-11-17T22:53:11","modified_gmt":"2022-11-17T21:53:11","slug":"digital-taxation-the-return-leg","status":"publish","type":"post","link":"https:\/\/www.thedigitalnewdeal.org\/en\/digital-taxation-the-return-leg\/","title":{"rendered":"DIGITAL TAXATION, THE RETURN LEG"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row unlock_row_content=&#8221;yes&#8221; row_height_percent=&#8221;0&#8243; override_padding=&#8221;yes&#8221; h_padding=&#8221;3&#8243; top_padding=&#8221;2&#8243; bottom_padding=&#8221;2&#8243; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;4&#8243; column_width_percent=&#8221;100&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243;][vc_column column_width_percent=&#8221;100&#8243; gutter_size=&#8221;3&#8243; overlay_alpha=&#8221;50&#8243; shift_x=&#8221;0&#8243; shift_y=&#8221;0&#8243; shift_y_down=&#8221;0&#8243; z_index=&#8221;0&#8243; medium_width=&#8221;5&#8243; mobile_width=&#8221;0&#8243; width=&#8221;2\/3&#8243;][vc_column_text el_class=&#8221;textone&#8221;]<\/p>\n<h3>This publication reconsiders the essential question of Big Tech&#8217;s taxation, an indispensable prerequisite to pave the way towards an economically fair and politically acceptable state of affairs.<\/h3>\n<p>In 2017 we published Digital Taxation (&#8220;<a href=\"https:\/\/www.thedigitalnewdeal.org\/fiscalite-reelle-pour-un-monde-virtuel\/\">Fiscalit\u00e9 r\u00e9elle pour un monde virtuel<\/a>&#8220;) with Vincent Renoux. We took part to the renewed address of these stakes, contributing to bringing about the famous &#8220;digital services tax&#8221;, in close relation with the French government.<\/p>\n<p>Four years later, we asked to the same author to look into the digital taxation topic once<br \/>\nagain, in order to build tangible proposals which take into account the new geopolitical<br \/>\ncontext.[\/vc_column_text][vc_button button_color=&#8221;accent&#8221; wide=&#8221;yes&#8221; border_width=&#8221;0&#8243; link=&#8221;url:https%3A%2F%2Fwww.thedigitalnewdeal.org%2Fwp-content%2Fuploads%2FDND_FISCALITE_NUMERIQUE_EN.pdf|title:TELECHARGER%20FISCALIT%C3%89%20NUM%C3%89RIQUE%2C%20LE%20MATCH%20RETOUR|target:_blank&#8221;]DONWLOAD DIGITAL TAXATION, THE RETURN LEG[\/vc_button][vc_button button_color=&#8221;accent&#8221; wide=&#8221;yes&#8221; border_width=&#8221;0&#8243; link=&#8221;url:https%3A%2F%2Fwww.thedigitalnewdeal.org%2Fwp-content%2Fuploads%2FDND_FISCALITE_NUMERIQUE_EN_MATCH_RETOUR.pdf|title:TELECHARGER%20R%C3%89SUM%C3%89%20PROPOSITIONS%20FISCALIT%C3%89%20NUM%C3%89RIQUE%2C%20LE%20MATCH%20RETOUR|target:_blank&#8221;]DONWLOAD SUMMARY OF PROPOSALS DIGITAL TAXATION, THE RETURN LEG[\/vc_button][vc_column_text el_class=&#8221;textone&#8221;]<iframe src=\"https:\/\/player.vimeo.com\/video\/772203232?h=9337798b3f\" width=\"640\" height=\"360\" frameborder=\"0\" allow=\"autoplay; fullscreen; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p><a href=\"https:\/\/vimeo.com\/772203232\">Fiscalit&eacute; Num&eacute;rique &#8211; Vincent Renoux<\/a> from <a href=\"https:\/\/vimeo.com\/thedigitalnewdeal\">Digital New Deal &#8211; ThinkTank<\/a> on <a href=\"https:\/\/vimeo.com\">Vimeo<\/a>.<\/p>\n<p>While the health crisis has consolidated the Big Tech&#8217;s power, it is essential to reinstate the societal model we are defending, undermined by some foreign digital corporations ostensibly trying to free themselves from it, whereas so many French and European corporations, included digital corporations, continue to abide by. It is a major competitiveness issue, and a consubstantial principle of fairness. This study presents insights aiming at feeding the debate and reinforce France&#8217;s action which is now at the frontline of this European and worldwide struggle.<\/p>\n<p>Here is Vincent Renoux&#8217; triad of proposals:<\/p>\n<p>[\/vc_column_text][vc_row_inner row_inner_height_percent=&#8221;0&#8243; back_color=&#8221;color-lxmt&#8221; overlay_alpha=&#8221;50&#8243; gutter_size=&#8221;3&#8243; shift_y=&#8221;0&#8243; z_index=&#8221;0&#8243;][vc_column_inner column_width_percent=&#8221;100&#8243; gutter_size=&#8221;3&#8243; override_padding=&#8221;yes&#8221; column_padding=&#8221;3&#8243; overlay_alpha=&#8221;50&#8243; shift_x=&#8221;0&#8243; shift_y=&#8221;0&#8243; shift_y_down=&#8221;0&#8243; z_index=&#8221;0&#8243; medium_width=&#8221;0&#8243; mobile_width=&#8221;0&#8243; width=&#8221;1\/1&#8243;][vc_column_text el_class=&#8221;textone&#8221;]<strong>1\/ Virtual Permanent Establishment<\/strong> &gt; allows France the possibility to tax<br \/>\nWould be recognised on the basis of criteria that remain to be defined and discussed. Note<br \/>\nthat creating the obligation to declare a permanent establishment is not a panacea. It will<br \/>\nthen be necessary to determine its taxable income. This is the purpose of solution 3 below.<\/p>\n<p><strong>2\/ Tax Abuse<\/strong> &gt; taking it on artificial funding schemes<br \/>\nThis tax would be collected by the procedure of ex officio taxation in order to determine the<br \/>\nincome and expenses attributable to the French operation. Coupled with the provisions on<br \/>\nvirtual permanent establishments, the aim of this tax is to encourage the declaration of a<br \/>\ntaxable presence in France.<\/p>\n<p><strong>3\/ Profit Split<\/strong> &gt; value French digital establishments as well as the users and their data.<br \/>\nSet up the taxable income for foreign companies in France through the transfer prices<br \/>\ntechnique from OCDE commentaries. This tax &#8220;vade mecum&#8221; would thus make it possible to<br \/>\nvalue the digital presence in France, to determine the share of profits attributable to this<br \/>\ndigital exploitation carried out in France, as a function of the turnover that is achieved on<br \/>\nour territory.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][vc_column column_width_percent=&#8221;100&#8243; gutter_size=&#8221;2&#8243; overlay_alpha=&#8221;50&#8243; shift_x=&#8221;0&#8243; shift_y=&#8221;0&#8243; shift_y_down=&#8221;0&#8243; z_index=&#8221;0&#8243; medium_width=&#8221;3&#8243; mobile_width=&#8221;0&#8243; sticky=&#8221;yes&#8221; width=&#8221;1\/3&#8243;][vc_single_image media=&#8221;61971&#8243; media_width_percent=&#8221;100&#8243; advanced=&#8221;yes&#8221; media_items=&#8221;media|poster&#8221; media_text=&#8221;under&#8221; media_overlay_opacity=&#8221;50&#8243; media_overlay_anim=&#8221;no&#8221; media_text_anim=&#8221;no&#8221; media_image_anim=&#8221;no&#8221; media_padding=&#8221;2&#8243;][uncode_share layout=&#8221;multiple&#8221;][vc_separator][vc_button wide=&#8221;yes&#8221; border_width=&#8221;0&#8243; link=&#8221;url:http%3A%2F%2Fwww.thedigitalnewdeal.org%2Fpublications%2F|||&#8221;]back to publications[\/vc_button][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>While the health crisis has consolidated the Big Tech&#39;s power, it is essential to reinstate the societal model we are defending&#8230;<\/p>\n","protected":false},"author":1,"featured_media":60610,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[77],"tags":[],"class_list":["post-61981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publications-en"],"yoast_head":"<!-- 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