Brussels is considering taxing large American technology groups (Big Tech) by expanding the levy on large corporations in an effort to increase EU revenues while avoiding a backlash from the Trump administration. Financial Times reports, writes UNN.
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The European Commission is reportedly working on new ways to generate more revenue from technology groups such as Apple, Meta and Google without singling them out, Reuters writes.
The report says that Brussels has been considering changes to its "Corporate Resource for Europe" (CORE) proposal, which would require all companies operating in the EU with annual revenue exceeding €100 million ($112.32 million) to pay a one-off annual tax contribution.
In its current form, CORE requires these companies to pay a fixed annual levy of between €100,000 and €750,000, covering only a small portion of a multinational company's profits.
"Some (EU) capitals are opposed to a purely digital tax because they do not want to upset the Americans, while many others are opposed to CORE," an EU official told the FT. "The solution is to expand (the tax) so that it covers virtually all large companies."
"The European Commission remains ready to support the Council (of the EU) and the European Parliament in reaching an agreement on a new own-resources package... as these are essential to ensuring adequate funding for our shared priorities over the next decade," a spokesperson for the EU executive told Reuters.
Apple, Google, Meta and the Computer & Communications Industry Association (CCIA), which represents several U.S. technology companies, did not immediately respond to Reuters' requests for comment outside normal working hours.
U.S. President Donald Trump threatened in June to impose a 100% tariff on all goods from any country that levies a digital services tax on American companies.
The Office of the U.S. Trade Representative, which has long threatened European countries with retaliatory tariffs if they impose such taxes, claims that these levies discriminate against American companies, which dominate the sector worldwide.
The EU wants to introduce new taxes so that countries pay less into the bloc’s budget10.09.26, 01:18