The EU Economic Financial Affairs Council of 21 January 2020 was the first meeting of EU finance ministers under the Croatian presidency of the Council. The presidency used the opportunity to present its work programme on economic and financial issues.
Digital Tax
The finance ministers exchanged views on the digital services tax. They looked at the progress achieved so far in the context of the OECD, both on the reallocation of profits of digitalized businesses and on the general reform of international corporate taxation.
“Digitalisation has brought fundamental changes in the way companies operate which requires us to adapt our rules, in particular in the area of taxation. This is a global issue which needs a global solution. That's why the EU is committed to actively engaging in the ongoing OECD negotiations.”
- Zdravko Marić, minister for finance of Croatia
The ministers confirmed that an international solution on digital taxation was the best way forward. Ministers acknowledged the fact that the OECD was working on digital taxation in order to reach a global consensus by the end of 2020.
Enforcement of anti-money laundering and counter-terrorist financing rules
Commissioner Dombrovskis addressed the Commission’s position on the enforcement of anti-money laundering and counter-terrorist financing rules. The Commissioner reminded that the transposition date for the 5th Money Laundering Directive was the 10 January this year and emphasised the importance of the changes that the Directive brought. The Commission will keep a firm approach and will make sure that the rules are applied in time and correctly. To date, a number of Member States had failed to notify of the transposition of the rules which is against the collective interest of the Union. The Commission is currently preparing internal procedure to launch the infringement actions for all cases of non-communication of the transposition measures.