EU eyes tax on tech giants closer to 2 percent than 6 percent of revenue
The European Union this month will unveil plans to tax large global tech companies’ revenue at a rate in the 2-to-6-percent range, though more likely closer to 2 than to 6 percent, French Finance Minister Bruno Le Maire said in a newspaper interview, APA reports quoting Reuters.
“ A European directive will be disclosed in the coming weeks. It will be a considerable step. The (tax rate) range is 2 percent to 6 percent, we will be closer to 2 percent than 6 percent”, Le Maire told Le Journal du Dimanche.
To those who might say the measure is too modest, Le Maire said his answer was:“It’s a starting point. I prefer a text that will be implemented very quickly rather than endless negotiations. We will fine tune it later”.
A draft European Commission document seen by Reuters last month and subject to changes before its publication, proposed a levy based on where the customer – rather than the company - is located. The charge would be based on 1 percent to 5 percent of the company’s“aggregated gross revenues”.
The proposal aims at increasing the tax bill of firms like Amazon.com (AMZN.O), Alphabet’s (GOOGL.O) Google and Facebook (FB.O), which are accused by large EU states of paying too little by rerouting their EU profits to low-tax countries such as Luxembourg and Ireland.
President Emmanuel Macron’s government has proposed taxing the tech giants on revenues rather than profits, to get around the problem that the companies shift the profits from where they are earned to low tax jurisdictions.
Italy, Germany and Spain, together with France, are spearheading the push for tax reform. They face resistance from smaller nations like Ireland who are a hub for those firms’ investments and fear changes could hurt their economies.
Related news releases
- 20.06.2018Merkel to Trump: Falling German crime stats 'speak for themselves'
- 20.06.2018'Minor Explosion' at UK Train Station spurs evacuation - UPDATED
- 20.06.2018France to lead joint fighter jet program with Germany
- 19.06.2018France, Germany vow to boost EU defense and security
- 19.06.2018Turkish deputy PM: We will definitely take F-35s
- 19.06.2018Turkish soldier martyred in bomb attack in SE Turkey
- 19.06.2018Turkey: 45 injured in bus crash
- 19.06.2018One killed, four injured in Malmo shooting: Swedish police - UPDATED
- 18.06.2018Candidate for Georgian premiership says number of ministries will decrease
- 18.06.2018EU extends sanctions against Russia for a year over Crimea
- 17.06.2018Turkey set to create own Antarctic research station next year — president
- 17.06.2018Protesters demand justice for Grenfell in London
- 17.06.2018OPEC+ to discuss production increase of 1.5 mln barrels only for Q3 — Russian minister
- 17.06.20186 arrested, 200 kg narcotics seized by Albanian police
- 16.06.2018Erdogan vows improved animal protection laws post polls
- 16.06.2018US soldier gets decked in face in drunken fistfight with Azerbaijanis in Lithuania
- 16.06.2018France's Macron looks for common ground with Italy on immigration debate
- 16.06.2018Turkish, Qatari leaders discuss Palestine over phone
- 15.06.2018Greece, Macedonia to sign name change accord June 17: Greek ministry
- 15.06.2018Police chief of Georgia’s Adjara region murdered
- 15.06.2018Turkish PM says state of emergency to be lifted
- 14.06.2018Turkish PM says armed attackers in southeastern Turkey are PKK supporters
- 14.06.2018France is ready to accept migrants from Aquarius Ship amid standoff with Italy - UPDATED
- 14.06.2018Armed attack on campaigning AK Party members in SE Turkey leaves 3 dead, 8 injured - UPDATED
- 14.06.2018Mamuka Bakhtadze nominated as Georgian PM
- 14.06.2018Turkish jets ‘neutralize’ 3 PKK terrorists in N. Iraq
- 13.06.2018Macedonia president says won't approve name deal with Greece
- 13.06.2018Georgian PM resigns
- 13.06.2018Mogherini: EU to present proposals on security following Salisbury incident
- 13.06.2018Germany's Merkel calls for common EU refugee policy
- 13.06.2018Tesla cuts 9 percent of workforce in search for profit
- 12.06.2018Man arrested after hostage incident in Paris - UPDATED
- 12.06.2018Turkish president: "We didn’t buy S-400 to keep them in store, will use if needed"
- 12.06.2018Greece, Macedonia resolving long-standing name row
- 12.06.2018Armed man holed up with hostages in Paris, police deployed to the scene
- 12.06.2018IMF will remain engaged in Greece, Lagarde says
- 10.06.2018Erdogan slams Austria for shutting mosques
- 09.06.2018Russia’s return to G7 requires implementation of Minsk Agreements — Merkel
- 09.06.2018Merkel says differences on trade remain despite joint G7 communique
- 09.06.2018Arab leaders to hold meeting with King Abdullah over Jordan crisis
- 06.03.2018Ex-Russian spy critically ill after substance exposure
- 06.03.2018Erdogan: 2,872 terrorists 'neutralized' in Afrin op
- 06.03.2018Turkey’s Erdogan comments on U.S. threat of sanctions
- 03.03.2018Two people killed by train hit in Oslo
- 03.03.2018UK: Death toll rises to 10 as temperatures plummet
- 03.03.2018Turkish army chief vows to defeat terrorists in Afrin