Austria's advertising operators are calling for higher digital tax against Trump's tariffs!

Austria's advertising operators are calling for higher digital tax against Trump's tariffs!

In response to the protectionist tariffs that US President Donald Trump has introduced and have the far-reaching effects on the global economy, the OOHA association of the outer advertisers of Austria calls for a drastic increase in digital tax on search engine operators. The spokeswoman for Ooha, Friederike Müller-Wernhart, emphasizes that these measures should be assessed as one-sided thinking in the United States. This development raises questions about the future of the advertising market and the competitiveness of Austria.

The Ooha has brought a sensitive increase in digital tax into conversation, with a possible amount of 20 percent being discussed. Müller-Wernhart points out that an increase in this tax could have significant effects on the booking behavior of the advertising economy. The association is committed to Austria as a business location, since important sales and value creations are generated there.

economic effects and challenges

The concerns about restrictions in the digital space are also perceived as a deprivation of freedom, according to Müller-Wernhart. In this context, the Ooha advocates a duty -free economic zone between the EU and the USA. This measure could be seen as a strategic answer to the current challenges. Furthermore, it is emphasized that domestic media campaigns could be successful without the support of big-tech companies, but access to digital platforms for the young, globalized target group remains essential.

The combination of outer advertising, dooh (digital out-of-home) and social media is considered crucial to effectively achieve the desired target groups. Another central concern is the drainage of advertising money to large tech companies, often combined as a gamam (Google, Apple, Meta, Amazon, Microsoft), which is considered problematic for the Austrian market.

international digitization and tax regulations

In an international context, developments regarding digital taxes have been important since the establishment of the BEPS project (base erosion and profit shifting). This was created at OECD/G20 level to combat excessive tax avoidance and ensure that profits are taxed where the added value actually takes place. The first action point of this program led to the initiative for a global digital tax, which is currently in a progressive process.

The OECD works on a two-pillar solution consisting of amounting A and amount B. The second pillar aims at the introduction of a global effective minimum tax, which is already implemented nationally in many countries. The aim of this regulations in progress is the creation of legal certainty and avoiding conflicts by national digital taxes, which could possibly endanger the introduction of a multilateral agreement.

In view of the ongoing debate on digitization in a tax context, the OOHA underlines the need to actively intervene in the design of the framework conditions for the domestic advertising industry in order to ensure Austria's competitiveness in an increasingly digital world.