{"id":447873,"date":"2020-01-09T19:30:55","date_gmt":"2020-01-09T19:30:55","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=447873"},"modified":"2020-01-09T19:41:39","modified_gmt":"2020-01-09T19:41:39","slug":"the-chicu-government-criticised-for-its-intention-to-introduce-taxes-on-digital-giants-experts-opinion","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/the-chicu-government-criticised-for-its-intention-to-introduce-taxes-on-digital-giants-experts-opinion\/","title":{"rendered":"The Chicu government was criticised for its intention to introduce taxes on digital giants. Expert&#8217;s opinion"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>The Government of Moldova led by Ion Chicu was criticised for the proposal of Ministry of Finance, made after the draft state budget for 2020 was made public, to oblige multinational digital companies such as <strong>Facebook, Google, Apple, Amazon, Netflix or Airbnb<\/strong> to <span style=\"color: #993300\">register legal entities in Moldova and pay VAT on the revenues they earn from Moldovan users.<\/span><\/p>\n<p>However,<em> &#8220;going alone against the companies that rake in colossal revenues by any standards can undermine the efficiency of the whole enterprise and even affect our relationship with the United States,&#8221;<\/em> it is opinated in a <a href=\"https:\/\/www.watchdog.md\/wp-content\/uploads\/2020\/01\/GAFA-Study_Eng.pdf\">study<\/a>, which has Vladislav Kaim, the member of the UNCTAD Youth Network and a master student in Economics at Lund University, as the author.<\/p>\n<p>According to the Ministry of Finance estimations, such measures of taxation would\u00a0bring additional <strong>100 million lei<\/strong> in the state budget. Still, the experts community, political opposition and public reacted rather sceptically and,\u00a0as a result, the Government had to <span style=\"color: #993300\">postpone the entering of the decision in force from 1 January to 1 April<\/span>, as it is mentioned in the study.<\/p>\n<p>In the context of a union-wide digital services tax, which is aimed to be implemented by the EU in 2020, but also the disagreements between countries with different interests,<em> &#8220;Moldova as a small market with no current stake in the future of digital economy even more so cannot\u00a0<\/em><em>afford to act unilaterally,&#8221;<\/em> claimed Kaim.<\/p>\n<blockquote><p>&#8220;The presence of Google, Facebook and other digital giants in the life of Moldovans is ubiquitous. Thus, it is the duty of the government to make sure that our citizens get a fair deal from it, but unilateral measures imposed by a small and one of the poorest countries in Europe against the behemoths who thrive on effects of scale an global reach have a very limited potential of achieving that. Their potential impact on our relationship with the US should also be considered.&#8221;<\/p><\/blockquote>\n<p>The expert suggested two more strategies for the Moldovan government to choose from, instead of going alone against digital giants without leverage.\u00a0First, to delay the adoption of the new tax until January 1, 2021, until the EU would establish a permanent solution.<em>\u00a0&#8220;Thus, the Moldovan digital taxation regime will match the one of the biggest single market in the world, which can generate beneficial spillover effects in other spheres \u2013 for example, a faster obtaining of the GDPR adequacy decision,&#8221;<\/em>\u00a0Vladislav Kaim claimed.<\/p>\n<p>In case the executive wants to adopt a more proactive and regional strategy, it could come up with an initiative of a joint Eastern Partnership task force on digital taxation, comprised of representatives of the ministries of economy, fiscal bodies and antitrust regulators. <em>&#8220;Aiming for an EaP wide digital service tax in coordination with the processes in the EU will likely be supported by the office of Margrethe Vestager, the vice-president of the European Commission whose mandate lies in this sphere,&#8221;<\/em> specified the author of the study.<\/p>\n<p>The study was produced within the project <em><strong>\u201cFostering the Adoption and Implementation of Key Reforms<\/strong><\/em>\u201d, implemented with the support of <strong>National Endowment for Democracy <\/strong>and <strong>Watch Dog Moldova.<\/strong><\/p>\n<p>Photo:\u00a0DAMIEN MEYER\/AFP\/Getty Images<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>The Government of Moldova led by Ion Chicu was criticised for the proposal of Ministry of Finance, made after the draft state budget for 2020 was made public, to oblige multinational digital companies such as Facebook, Google, Apple, Amazon, Netflix or Airbnb to register legal entities in Moldova and pay VAT on the revenues they [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":447874,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,4],"tags":[533,297,534,35,530,27,501,532,531],"class_list":["post-447873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-society","tag-digital","tag-expert","tag-giants","tag-important","tag-it-giants","tag-moldova","tag-study","tag-vladislav-kaim","tag-watch-dog"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>The Government of Moldova led by Ion Chicu was criticised for the proposal of Ministry of Finance, made after the draft state budget for 2020 was made public, to oblige multinational digital companies such as <strong>Facebook, Google, Apple, Amazon, Netflix or Airbnb<\/strong> to <span style=\"color: #993300\">register legal entities in Moldova and pay VAT on the revenues they earn from Moldovan users.<\/span><\/p>\n<p>However,<em> &#8220;going alone against the companies that rake in colossal revenues by any standards can undermine the efficiency of the whole enterprise and even affect our relationship with the United States,&#8221;<\/em> it is opinated in a <a href=\"https:\/\/www.watchdog.md\/wp-content\/uploads\/2020\/01\/GAFA-Study_Eng.pdf\">study<\/a>, which has Vladislav Kaim, the member of the UNCTAD Youth Network and a master student in Economics at Lund University, as the author.<\/p>\n<p>According to the Ministry of Finance estimations, such measures of taxation would\u00a0bring additional <strong>100 million lei<\/strong> in the state budget. Still, the experts community, political opposition and public reacted rather sceptically and,\u00a0as a result, the Government had to <span style=\"color: #993300\">postpone the entering of the decision in force from 1 January to 1 April<\/span>, as it is mentioned in the study.<\/p>\n<p>In the context of a union-wide digital services tax, which is aimed to be implemented by the EU in 2020, but also the disagreements between countries with different interests,<em> &#8220;Moldova as a small market with no current stake in the future of digital economy even more so cannot\u00a0<\/em><em>afford to act unilaterally,&#8221;<\/em> claimed Kaim.<\/p>\n<blockquote><p>&#8220;The presence of Google, Facebook and other digital giants in the life of Moldovans is ubiquitous. Thus, it is the duty of the government to make sure that our citizens get a fair deal from it, but unilateral measures imposed by a small and one of the poorest countries in Europe against the behemoths who thrive on effects of scale an global reach have a very limited potential of achieving that. Their potential impact on our relationship with the US should also be considered.&#8221;<\/p><\/blockquote>\n<p>The expert suggested two more strategies for the Moldovan government to choose from, instead of going alone against digital giants without leverage.\u00a0First, to delay the adoption of the new tax until January 1, 2021, until the EU would establish a permanent solution.<em>\u00a0&#8220;Thus, the Moldovan digital taxation regime will match the one of the biggest single market in the world, which can generate beneficial spillover effects in other spheres \u2013 for example, a faster obtaining of the GDPR adequacy decision,&#8221;<\/em>\u00a0Vladislav Kaim claimed.<\/p>\n<p>In case the executive wants to adopt a more proactive and regional strategy, it could come up with an initiative of a joint Eastern Partnership task force on digital taxation, comprised of representatives of the ministries of economy, fiscal bodies and antitrust regulators. <em>&#8220;Aiming for an EaP wide digital service tax in coordination with the processes in the EU will likely be supported by the office of Margrethe Vestager, the vice-president of the European Commission whose mandate lies in this sphere,&#8221;<\/em> specified the author of the study.<\/p>\n<p>The study was produced within the project <em><strong>\u201cFostering the Adoption and Implementation of Key Reforms<\/strong><\/em>\u201d, implemented with the support of <strong>National Endowment for Democracy <\/strong>and <strong>Watch Dog Moldova.<\/strong><\/p>\n<p>Photo:\u00a0DAMIEN MEYER\/AFP\/Getty Images<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/the-chicu-government-criticised-for-its-intention-to-introduce-taxes-on-digital-giants-experts-opinion\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' style=\"font-weight:bold\" ><\/div><div 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Expert&#039;s opinion - Moldova.org<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.moldova.org\/en\/the-chicu-government-criticised-for-its-intention-to-introduce-taxes-on-digital-giants-experts-opinion\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Maria Dulgher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/the-chicu-government-criticised-for-its-intention-to-introduce-taxes-on-digital-giants-experts-opinion\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/the-chicu-government-criticised-for-its-intention-to-introduce-taxes-on-digital-giants-experts-opinion\\\/\"},\"author\":{\"name\":\"Maria Dulgher\",\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/#\\\/schema\\\/person\\\/4cd49a1f49c7d48a105c8a4cb7e3a2bf\"},\"headline\":\"The Chicu government was criticised for its intention to introduce taxes on digital giants. 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