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OECD: Löger affirms decisive progress over global digital tax Austria's engagement during EU Council Presidency continues to produce results

BMF/Vienna (OTS) – Following Austria's determined campaign for introduction of a digital tax at European level within the framework of the country's EU Council Presidency and, in addition, Austria's adoption of national measures during closed government consultations, now, a key advance has been achieved also at OECD level.

Over 120 countries have affirmed their ambition to achieve a consensus on a long-term digital-tax agreement by 2020.

The aim is to revise global tax rules in order to close loopholes. Specifically, digital corporations will face obstacles to reporting their revenue primarily in low-tax countries and in paying practically no tax at all in those countries where they earn most of their income. The agreement would cover around 90% of the global economy and would thus have great potential for putting an end to the discrepancy between taxation of digital business and traditional business.

According to Austrian Finance Minister Hartwig Löger: "In the context of our EU Council Presidency, we vigorously campaigned for introduction of a European digital tax, enabling a first step to be taken towards a tougher, so to speak, long-term solution at global level. At the same time, during the Council Presidency itself, for instance in discussions with US Treasury Secretary Steven Mnuchin, we perceived that on a global level too, the willingness does exist to introduce such a digital tax. In this context, the progress now achieved at OECD level constitutes a decisive step forward and encourages us in our initiative aimed at rapidly achieving greater fairness in business taxation. For it is the case that we must finally succeed in tailoring our tax rules to the economy of the 21st century, and also in prompting business undertakings without any physical presence to make a fair contribution to the tax system."