EU May Impose New 3 Percent Tax on Tech Companies' Revenues
U.S. technology companies could end up paying billions of dollars in new taxes under a plan the European Commission is considering, according to MarketWatch (March 15, Murphy). A draft report seen by the Financial Times reportedly states that a "digital tax" would be assessed against companies' revenues instead of their profits. The tax, likely to be set at 3 percent, would apply to tech firms with more than 100,000 users in Europe and cover everything from ad revenue from Alphabet Inc.'s Google to subscription fees for companies like Apple Inc. "The tax, which may be announced next week in Brussels, is estimated to raise about 5 billion euros a year," calculates MarketWatch. But it is likely to face stiff opposition from U.S. tech groups even as such EU member states as France and Germany take the various tech companies to task for not paying their fair share in EU taxes.
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