EU Commission Prepares Draft Tax Legislation on Digital Economy: Expert Blog

Priced at $16,000 per coin, three Bitcoins are now worth more than the Netherlands GDP per capita of $45,294 (2016), one of richest nations in the world. But Bitcoin’s current price which increased sixteen-fold this past year-- pales in comparison to the price of one tulip bulb at the height of the Dutch Tulip mania that sold for more than ten times the annual income of a skilled craftsworker.

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The pragmatic European Union (EU) which has a long history and experience with global commerce, clearly sees that (1) virtual currencies will continue to gain legal legitimacy, (2) world’s largest satellite companies which are headquartered in the EU will continue to increase world-wide-web-connectivity, (3) to enable Blockchain technology to be embraced and implemented all across the world, and therefore (4) the EU’s economic and financial affairs council (ECOFIN) needs to implement a globally coordinated international tax policy for the EU Member States to tax the profits of the new digital economy.

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