Joan Burton (Dublin West, Labour)
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140. To ask the Minister for Finance if he will report on ongoing negotiations with his EU counterparts and the European Commission on the proposed EU digital tax; and if he will make a statement on the matter. [37411/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware that on 21 March 2018 the European Commission published two proposed Directives which seek to tax certain digital activities differently within the EU.

The first, an ‘interim’ solution for a 3% levy on turnover from certain digital service activities. The second, ‘comprehensive solution’ requires an overhaul of international taxation, establishing the concept of a “digital permanent establishment”, allowing countries taxing rights over the digital business carried out by a company in that country, even where that company has no physical presence there.

The interim proposal is being debated among Member States – both at technical and political level. Most recently, it was discussed at the informal ECOFIN on 8 September 2018. I welcomed the opportunity to discuss the proposal with my EU counterparts and there was a healthy debate. While it is clear that there is widespread preference for a global solution, Ministers remain divided on the need for interim EU measures. Technical discussions on the proposal will continue.

Ireland will continue to actively engage on this matter with our fellow Member States and at OECD level to meet the challenges and opportunities that arise from the digitisation of the economy.