The EU Commission wants to re-tax international digital companies. EU economic commissioner Pierre Moscovici pleaded in Brussels for a new sales tax for digital companies such as Facebook and Google. The existing rules would have prevented digital companies operating in Europe from being adequately allocated taxes, said Moscovici for reasons for reform.

The bill, which was in advance online, shows that Commission would like to tax companies with a turnover of at least 750 million euros worldwide and more than 50 million euros in Europe in future with three percent on sales. The tax would mainly four major US corporations Google, Amazon, Facebook and Apple. For years, it has been criticized that se companies are shifting ir profits abroad and barely paying taxes.

According to estimates by European Commission, digital companies currently pay an average of about nine percent of company taxes, while classical companies pay an average of around 20 percent. Digital companies often have ir headquarters in places with a low tax burden, while ir customers are on whole continent.

Date Of Update: 22 March 2018, 12:03