The meeting, chaired by Croatian Finance Minister Zdravko Maric, also discussed digital profit reallocation as well as corporate taxation at the international level.
Digitisation has fundamentally changed the way companies do business and that requires adjustment of our rules, notably in the field of taxation. That is a global issue requiring a global solution and the EU is willing to actively and positively participate in the current talks within the OECD, said Maric, who chaired the meeting of the Economic and Financial Affairs Council (ECOFIN).
Maric is the first Croatian minister to chair an EU Council.
It was noted during the debate that an international solution would be the best solution to the issue of digital taxes as it would prevent the fragmentation of taxation systems and unilateral measures.
The OECD has been trying to reach an agreement on the matter at the global level by the end of this year. In May 2019, 129 countries confirmed plans to introduce taxes on digital services so as to more justly distribute revenues between countries and multinational Internet giants which earn their revenues around the globe and pay taxes where it most suits them.
The ministers also discussed the financial and economic aspects of the EU's Green Deal, which the Commission unveiled on January 14. The plan aims to mobilise one trillion euro worth of investment over the next decade to reach the goal of climate neutrality by 2050.
At the start of the meeting, Maric outlined the priorities of the Croatian EU presidency in his department. In addition to the four overarching priorities - a Europe that grows, a Europe that develops, a Europe that connects and an influential Europe, he also highlighted demographic challenges and their effect on the budget as well as Croatia's efforts to join the euro area.