The European Union Plans To Announce To The Global Technology Giant Tax Plan This Month

- Mar 06, 2018-

According to The Daily Times, French Finance Minister Bruno Le Maire said the European Union will announce plans to levy the tax on major global technology companies this month at rates ranging from 2% to 6%, but more Probably close to 2% instead of 6%.

Le Mer said: "The EU directive will be announced in the coming weeks, this will be an important step, the tax rate range of 2% to 6%, the tax rate is more likely to approach 2% instead of 6%."

Some may think the measure is too mild, says Lemer: "It's just a starting point, and I prefer a text that's quick to implement, not endless negotiation, which we'll fine-tune later."

Last month, Reuters saw a draft document from the European Commission. The document proposes a taxation scheme based on the location of the customer (not the company). The tax will be based on 1% to 5% of the company's total revenue.

The proposal aims to increase the tax burden on companies like Amazon and Alphabet, Google and Facebook. Previously, these companies were accused of being too low in tax expenditures by several EU powers as they shifted their profits from the EU to low-tax countries such as Luxembourg and Ireland