On 21 March, the Commission proposed new rules to ensure that digital business activities are taxed in a fair and growth-friendly way in the EU. The recent boom in digital businesses, such as social media companies, collaborative platforms and online content providers, has made a great contribution to economic growth in the EU. Current tax rules, however, were not designed to account for companies that are global, virtual or have little or no physical presence. Given dramatic growth in the number of digital companies as well as the fact that they currently have an average effective tax rate half that of the traditional economy in the EU, there is a real risk to Member State public revenues if digital companies do not contribute their fair share of tax. The first Commission proposal aims to reform corporate tax rules so that profits are registered and taxed where businesses have significant interaction with users through digital channels. The second proposal responds to calls from several Member States for an interim tax which covers the main digital activities that currently escape tax altogether in the EU.