Friday, 16 March 2018 11:14

Google, Facebook face 3% turnover tax in EU: report Featured

By

Multinational US technology companies like Google and Facebook will have to pay a 3% turnover tax in the EU, according to a draft proposal from the European Commission.

Reuters reported that it had seen the proposal which is set to be adopted next week, adding that it updated an earlier draft that had contemplated a rate of between 1% and 5%.

The proposal will need the backing of EU states and lawmakers and will be applicable to big companies which have global annual revenue above 750 million and annual taxable revenue above 50 million in the EU.

Earlier this month, French economy minister Bruno Le Maire said the bloc had plans to tax big multinational technology companies between 2% and 6% of their revenue, with the figure being closer to the lower end.

The move to tax revenue and not profits was mooted last September, during a meeting of EU finance ministers in the Estonian capital, Tallinn.

Complaints have been frequently voiced in countries around the globe that big American multinationals are siphoning off their profits to other low-tax havens like Ireland and Luxembourg.

In September last year, EU socialist lawmaker Paul Tang presented a report to the finance ministers' meeting on tax reform, saying that digital multinational companies "minimise the overall tax burden in the EU by routing all revenues to low-tax member states such as Ireland and Luxembourg".

Similar complaints have been voiced in countries outside the EU, including Australia. Multinational tech companies, including Apple and Microsoft, have faced questioning in the Australian Senate over tax minimisation.

Initially, the EU set the threshold at 10 million but raised it in order to exempt smaller companies and start-ups.

Reuters said: "Services that will be taxed are digital advertising, which would capture both providers of users’ data like Google, and companies offering ad space on their websites, like popular social media such as Facebook.

"The tax would be also be levied on online platforms offering 'intermediation services', a concept under which the Commission includes gig economy firms such as Airbnb and Uber. Digital market places, including Amazon, would also be within the scope of the levy."

The companies would be taxed in the EU country where their users are based. If their users are spread over numerous countries, then the tax would be shared over these nations.

All 28 EU countries need to approve any tax measure for it to become law.


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Sam Varghese

Web Analytics

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments