Stockreport
Europe Just Dropped a Major Tax Bombshell to Get U.S. Tech Giants to Pay Up [Fortune]
Last apple earnings: 2/1 04:30 pm
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US:NASDAQ Investor Relations: investor.apple.com
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The European Commission wants to see big tech firms pay a 3% tax on some of their revenues. This is a major break from the traditional way of calculating tax based on profits. The European Union’s executive body is frustrated with the relatively low corporate taxes paid by firms such as Facebook (fb) and Amazon , and individual EU countries are frustrated at seeing overseas firms take business from local rivals while booking their revenues elsewhere. Amazon (amzn) , which has irked regulators with a favorable tax deal in its Luxembourg base, paid a mere €16.5 million ($20.3 million) on its 2016 European revenues of €21.6 billion. In the long term, the Commission wants to see the EU’s corporate tax rules reformed so that companies are taxed on their profits based on the location of their customers and users, rather than the location of their headquarters. Digital companies would fall into the net if they make €7 million or more each year in the relevant count
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