Minister: Let us not change the EU tax code until OECD reforms crystallize | Politics

Pentus-Rosimannus, attending a meeting of EU finance ministers in Brussels on Tuesday, said: “Global tax reform could have an unpredictable impact on tax systems and investment strategies, both within the ‘EU than outside.

“We need to monitor the results of its implementation before taking any significant new steps,” she continued, arguing in favor of the current corporate tax system that it is: “Simple and efficient. It encourages innovation, growth and job creation, it is in Estonia’s interest to keep it as such.

“Any new tax rule should be carefully targeted to avoid an excessive burden on businesses,” Pentus-Rosimannus continued, according to a press release from the ministry.

In addition to comments on the EU Code of Conduct on Business Taxation, Pentus-Rosimannus said the OECD proposed tax reforms required that the two aspects be implemented in concert.

“It is crucial that the digital economy tax progresses as quickly as the minimum tax. The two pillars form equal parts of the OECD tax deal. Without one, the whole building will collapse,” he said. she continued.

The OECD minimum tax agreement took into account the Estonian tax system, Pentus-Rosimannus said, but that the EU’s proposal should not extend the tax beyond what has already been agreed is important, she added.

The European Commission is expected to publish its proposal for a minimum tax directive on December 22, according to the finance ministry.

No new details have been announced on the second half of the OECD’s statement, the so-called digital tax.

The EU Code of Conduct on Business Taxation, the main topic of this week’s meeting, dates back to 1997 and embodies the political commitment of EU member states to reduce tax measures that constitute tax competition damaging.

The extension of the code’s scope to the general characteristics of a tax system, characteristics that can give rise to tax exemption or double non-taxation, was also on the table at the meeting in Brussels on Tuesday.

A Member State seeking to introduce a tax incentive that departs from its general tax rules is required to notify the Code of Conduct group, which will then assess the tax measure.

The debate on the amendments to the code had been put aside in order to give priority to the reform of the OECD.

Estonia agreed in principle to join the OECD reform in October.

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