• Home
  • News
  • Artificial Intelligence
  • Internet of Things
  • Open Source
  • Hardware
  • Software
  • Security
  • Resources
  • Industry Voice
  • SMB Spotlight
  • Newsletters
  • Resources
    • Inqlogo 120x194
      Five things you should look for in choosing a Testing provider

      Choosing a Testing Partner can be complex.  So what do you look for?  This guide offers insight into the qualities you must look for in choosing a Testing provider.  Download now to learn more.

      Download
      Inqlogo 120x194
      Your questions answered: How to protect your data in the cloud

      The number of successful cyberattacks per year per company has increased by 46% over the last four years. But what really needs to be considered when exploring a solution? What questions need to be asked? Download to find out...

      Download
      Find resources
      Search by title or subject area
      View all resources
  • Follow us
    • RSS
    • Twitter
    • LinkedIn
    • Newsletters
    • Facebook
    • Google+
    • YouTube
  • Newsletter
  • Industry Voice
  • SMB Spotlight
The Inquirer
The Inquirer
  • Home
  • News
  • Artificial Intelligence
  • Internet of Things
  • Open Source
  • Hardware
  • Software
  • Security
The Inquirer
  • Communications

Europe proposes strict new rules for tax-dodging tech firms

Move will see firms whacked with a three per cent turnover tax

Europe proposes strict new rules for tax-dodging tech firms
Europe proposes strict new rules for tax-dodging tech firms
  • Carly Page
  • Carly Page
  • @CarlyPage_
  • 21 March 2018
  • Tweet  
  • Facebook  
  • Google plus  
  •  
  •  
  • Send to  
0 Comments

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

As expected, the first part of the EC's two-step proposal is to whack tech firms with a three per cent turnover tax.

This measure will affect companies with global annual revenues of above €750m and taxable EU revenue above €50m, and will ensure the likes of Apple, Facebook and Google pay "their fair share", the EC said.

This interim tax will be based on revenues "created from certain digital activities which escape the current tax framework entirely", including online advertising, the supply of platforms connecting users and suppliers of services and goods (such as AirBnb and Uber), and the sale of data derived from user-provided information.

The EC's second solution, which it describes as its "preferred long-term solution," would tax digital profits where they are generated. The tax would be applied even if companies do not have a physical presence in the country.

According to the EC, top digital firms pay an average tax rate of just 9.5 per cent in the EU - far less than the 23.3 per cent paid by traditional companies.

Amazon, for example, paid a mere €16.5m on its 2016 European revenues of €21.6bn thanks to its heavily-criticised tax deal with Luxembourg. 

"Our pre-Internet rules do not allow our Member States to tax digital companies operating in Europe when they have little or no physical presence here," Pierre Moscovici, Europe's commissioner for economic and financial affairs, taxation and customs said.

"This represents an ever-bigger black hole for Member States, because the tax base is being eroded. That's why we're bringing forward a new legal standard as well an interim tax."

The proposal still needs the backing of EU member states' governments and lawmakers, but if it did go into force, the EC claims that an estimated €5bn in revenues a year could be generated.

However, is likely to face opposition. Ireland, in particular, is likely to be a vocal opponent of the move, as its low tax rates have encouraged companies such as Facebook and to locate their international headquarters in the country. µ

  • Tweet  
  • Facebook  
  • Google plus  
  •  
  •  
  • Send to  
  • Topics
  • Communications
  • Apple
  • Google
  • Facebook
  • Amazon
  • tax

INQ Latest

Echo
Amazon launches Alexa Announcements

Never miss dinner again....

  • Hardware
  • 20 April 2018
Google Updates
Google Updates: Free Android Apps plus earbuds, AI kits and Nokia news

Your weekly round-up of Google news and rumours

  • Software
  • 20 April 2018
Listen
BBC releases thousands of its sound effects as free .wav files

So we're guessing that's the rest of your afternoon lost

  • Software
  • 20 April 2018
Apple not planning to merge iOS and macOS anytime soon, says Tim Cook

CEO believes keeping them separate is what makes them work well

  • Desktops
  • 20 April 2018
Back to Top

Most read

PornHub appears to have ballsed-up its tackling of 'deepfake' videos
Pornhub has ballsed-up its supposed crackdown on 'deepfake' videos
iPhone X2: Apple's 6.1in LCD iPhone could cost 'just' $550
iPhone X2: Apple's 6.1in LCD iPhone could cost 'just' $550
OnePlus 6 release date, specs and price: Leaked OnePlus advert teases Amazon India exclusive
OnePlus 6 release date, specs and price: Leaked OnePlus advert teases Amazon India exclusive
Fitbit Versa review
Fitbit Versa review
Listen
BBC releases thousands of its sound effects as free .wav files
  • Contact
  • Marketing solutions
  • Enterprise IT Events
  • About Incisive Media
  • Terms & conditions
  • Privacy policy
  • RSS
  • Twitter
  • LinkedIn
  • Newsletters
  • Facebook
  • Google+
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017