Why Tech Giants May Have to Pay More Taxes in Europe: QuickTake [Bloomberg Business News]
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Source: Bloomberg Business News
By Viktoria Dendrinou From The European Union is getting ready to propose an unusual new tax: a levy on the revenue (not the profit) of technology companies. Many EU countries say the tech industry isn’t paying its fair share to public coffers, and the effort to crack down on tax-avoidance schemes has led to large bills delivered in recent years to Apple Inc. and Amazon.com Inc. The idea behind the new tax is to focus on where tech users are based, rather than where a company chooses to place its European headquarters. The European Commission, the EU’s executive arm, is about to announce its proposal for such a levy. 1. How exactly would this tax work? If Facebook sold an ad based on its users in Brussels, say, it would pay the tax in Belgium. According to the latest version of the proposal obtained by Bloomberg, the tax rate would be 3 percent, a level which could yield around 5 billion euros in new revenue, according
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