European Commissioner Pierre Moscovici told French newspaper Ouest-France that the EU Commission will present a proposal by the end of March to fairly tax digital companies.
The Commission wants to establish a principle that internet companies pay corporate tax in each country based on turnover and profit in that country, Moscovici said, according to the Ouest-France report.
Moscovici said that the current situation, where internet companies pay tax at a 9 percent rate and other companies pay about 23 percent, distorts competition and reduces revenues.
The OECD will present its own proposals to tax digital business in an interim report to the G20 finance ministers meeting this April.
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