European Union unveils plans to make big tech companies pay more taxes

EU Commission to unveil plan for tax on tech company revenue

EU Commission to unveil plan for tax on tech company revenue

In a joint statement, a group of the EU's five biggest economies including France and Germany said they welcomed the proposal for a digital tax.

However, the proposal is projected to bring in a mere $6 billion in revenue-weak by the EU's standards.

"The proposed turnover tax aimed at online platforms is discriminatory and ignores the global consensus that the so-called "digital economy" should not be singled out", said Christian Borggreen of the Computer & Communications Industry Association.

The tax plans are likely to affect United States tech giants including Google, Facebook, and Amazon.

Some opponents also see the plan as an ill-timed move that could backfire by further undermining already-tricky relations with the U.S.

E-commerce that involves the direct sale of a good or service, such as Amazon's direct retailing business, or paid for Spotify music streaming subscriptions, would not be taxed under this proposal. This is a major break from the traditional way of calculating tax based on profits.

This is meant to protect start ups and scaling businesses from the effects of the tax.

It has drawn up a double-layered plan to reform rules on taxing digital firms where they make sales - regardless of where their physical presence is.

The tax would be collected in countries where the users are located.

The new initiative could allow member states to tax profits that are generated in their territory, even if a company does not have a physical presence there.

- It exceeds a threshold of €7m in annual revenues in a member state.

In one of the two offered proposals, companies eligible to be taxed at the new rate only have to meet one of the criteria of either exceeding €7 million in annual revenues in an European Union member country, having at least 100,000 members in a member country over the course of a year or 3,000 business contracts for digital services in a year.

The proposed new rules would also change how profits are allocated to member states.

EU Trade Commissioner Cecilia Malmstrom has flown to Washington to petition the U.S. for an exemption from proposed steel and aluminium tariffs, although retaliatory taxes on imports including corn remain on the table, sources say.

The European Commission said it wanted an interim 3% levy on internet-based firms with annual global revenues of at least £658m and EU revenues of £44m - which includes Google, Apple, Facebook and Amazon.

The UK Treasury said the Government supported a wider approach to the tax issue.

Collectively, this doesn't amount to much for companies that basically print money in their basements, but they've been working hard to muster resistance on the part of US government.

The EU pointed out that nine of the world's top 20 companies by market capitalisation are now digital, compared to 1 in 20 ten years ago.

THE EUROPEAN COMMISSION (EC) has unveiled its long-awaited plan to better tax technology companies.

"But this win-win situation raises legal and fiscal concerns".

Recommended News

  • Northeast Ohio weather: Watch for snow on the morning commute

    Northeast Ohio weather: Watch for snow on the morning commute

    Your full team of First Alert meteorologists- Jerry Jackson, Dontae Jones, Megan Lindsey and David Sawyer- will keep you updated. Rhode Island, Northern Connecticut and most of Central and Eastern Massachusetts are under a winter storm watch until 8 a.m.
    Israeli courts violate Palestinian minors' rights

    Israeli courts violate Palestinian minors' rights

    B'Tselem, an Israeli human rights group, issued a report Tuesday criticizing Israel's treatment of minors in its military courts . Hamas and Fatah agreed on a reconciliation agreement in October but it has collapsed.
    China sees Lenovo S5, K5, K5 Lite for very cheap

    China sees Lenovo S5, K5, K5 Lite for very cheap

    The K5 has rear 13-megapixel and 5-megapixel dual cameras, while the K5 Play has 13-megapixel and 2-megapixel dual cameras. For the cameras, the S5 has dual 13 MP rear cameras of which, one is Monochrome sensor, while the other is an RGB sensor.
  • Patients Regain Sight With Stem Cell Treatment In UK Clinical Trial

    Patients Regain Sight With Stem Cell Treatment In UK Clinical Trial

    Douglas, who is from London , developed severe age-related macular degeneration in his right eye three years ago. Da Cruz stopped short of calling the procedure a cure because it does not completely restore normal vision.
    Chelsea ready to rescue Luke Shaw from Manchester United

    Chelsea ready to rescue Luke Shaw from Manchester United

    But the 55-year-old looks to have the backing of his players, with Young saying his team-mates know where they stand. Young had been out the global set-up for four years before being called up by Gareth Southgate last November.
    Lawmakers in Kosovo release tear gas in Parliament to prevent vote

    Lawmakers in Kosovo release tear gas in Parliament to prevent vote

    Live footage from March 21 shows MPs hastily exiting the chamber as smoke billows out, apparently from multiple tear gas bombs. Kosovo's opposition lawmakers release a tear gas canister inside the country's parliament in Pristina on March 21, 2018 .
  • Authorities Investigate Motive in Maryland School Shooting

    Authorities Investigate Motive in Maryland School Shooting

    Rollins then shot two people at close range, a male student and a female student, before he was confronted by the officer. "And to me it's outrageous that we haven't taken action yet on something so important as school safety", Hogan said.
    State arrives in Atlanta for the Sweet 16

    State arrives in Atlanta for the Sweet 16

    But the Wildcats can't count on doing that against a Kentucky team that is averaging 9.6 turnovers per game in the postseason. Nine players from the team went on to play in the National Basketball Association , and a few broke into the coaching ranks.
    Wildcats hold off UMBC to advance to Sweet 16

    Wildcats hold off UMBC to advance to Sweet 16

    Kentucky is led by one of the best freshman in the country, forward Kevin Knox, a likely lottery pick in this year's NBA Draft. On paper, yes, UMBC-Virginia qualifies as the biggest upset. "Yeah, they accomplished a lot", said UMBC student Matt Conners.
  • Ronaldo: We should always believe we are the best

    Ronaldo: We should always believe we are the best

    Speaking after receiving the award, Ronaldo said: " I am grateful for this award to all those who are here ", he said. Why is it that Ronaldo can not go to China? "I gave him all the instructions". "Now he is giving me confidence".
    South Korea's Leader Hints At 3-Way Talks With US, North Korea

    South Korea's Leader Hints At 3-Way Talks With US, North Korea

    Nuclear disarmament "is not something that can be realised only through an agreement between the South and the North". Yong-Pill is said to be the last South Korean singer to perform in the North around 13 years ago.
    Sensex ends 73 points higher; Nifty reclaims 10100-level

    Sensex ends 73 points higher; Nifty reclaims 10100-level

    Broader markets too were in better shape, with the BSE small-cap index gaining 0.31 per cent and mid-cap spurting 0.22 per cent. KCP Sugar climbed 5.28 per cent, Gayatri Sugar gained 2.54 per cent while Ugar Sugar ended flat.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.