The European Commission is discussing changes to a proposed annual levy on large firms so it can raise more from US technology groups without a digital-only tax, the Financial Times reported.
Brussels is considering a broader levy on large companies as a way to collect more from US technology groups without a tax aimed only at digital services, the Financial Times reported on Wednesday and Reuters relayed.
Six officials told the FT that the European Commission is looking at changes to its Corporate Resource for Europe proposal. In its current form, CORE would require firms operating in the EU with annual revenue above 100 million euros to pay a fixed yearly amount of between 100,000 and 750,000 euros.
Officials told the paper that some capitals oppose a pure digital tax because they do not want a clash with the Trump administration, while many also oppose CORE as drafted. One official said the idea under discussion is to widen the levy so it covers most large companies.
The talks sit inside negotiations on the EU's shared budget, the FT reported, at a time when national budgets are tight and global efforts to tax multinational profits have stalled. Washington has threatened retaliation against countries that impose digital-services levies.
No legislative text has been published. Reuters presented the account as a report of internal discussions, not an adopted tax.
People Sentiments Mixed
- An EU official told the Financial Times that some capitals oppose a pure digital tax because they do not want to upset the Americans, and that many more oppose CORE as it stands.