Large digital companies with significant revenues in the European
Union such as Google and Facebook could face a 3% tax on their turnover
under a draft proposal by the European Commission.
The proposal, expected to be adopted next week and still subject to changes, updates an earlier draft which envisaged a tax rate of between 1 and 5%.
The tax, if backed by EU states and lawmakers, would only apply to large firms with annual worldwide revenues above €750 million ($924 million) and annual “taxable” revenues above €50 million in the EU.
The threshold for EU revenues has been raised from €10 million initially foreseen to exempt smaller companies and emerging start-ups from the tax.
Large US firms such as Uber, Airbnb and Amazon could also be hit by the new levy, which would apply across the 28 EU countries.
Read more: EU ready to hit big US tech firms with 3% turnover tax – EURACTIV.com
The proposal, expected to be adopted next week and still subject to changes, updates an earlier draft which envisaged a tax rate of between 1 and 5%.
The tax, if backed by EU states and lawmakers, would only apply to large firms with annual worldwide revenues above €750 million ($924 million) and annual “taxable” revenues above €50 million in the EU.
The threshold for EU revenues has been raised from €10 million initially foreseen to exempt smaller companies and emerging start-ups from the tax.
Large US firms such as Uber, Airbnb and Amazon could also be hit by the new levy, which would apply across the 28 EU countries.
Read more: EU ready to hit big US tech firms with 3% turnover tax – EURACTIV.com
