8 hrs ago
EU Weighs Broad Corporate Levy Amid US Tariff Threat
The European Union is looking at ways to raise more money from large companies.
A report says it may change a proposed tax so that many big businesses, not just technology companies, would pay.
The plan could apply to companies earning more than €100 million a year in the EU.
The current proposal sets payments at between €100,000 and €750,000 each year.
Some EU officials reportedly worry that a tax aimed only at technology companies could anger the United States.
President Donald Trump has threatened high tariffs against countries that tax US technology companies.
The European Commission has not publicly commented on the report, and Reuters said it could not verify it.
The European Commission is reportedly considering changes to its proposed Corporate Resource for Europe levy.
The proposal could require EU-operating companies with annual revenue above €100 million to pay a lump-sum contribution.
The current proposal sets annual payments between €100,000 and €750,000, according to the report.
The broader levy could capture revenue from large technology firms without targeting them specifically.
Trump has threatened 100% tariffs against countries imposing digital services taxes on US companies.
- Who
- The European Commission is reportedly considering changes to a proposed levy affecting large companies, including US technology firms.
- What
- A broader annual corporate levy is being considered to raise EU revenue while avoiding singling out US technology companies.
- Where
- The European Union.
- When
- The report was published Wednesday; Trump made the tariff threat in June.
- Why
- To capture more revenue from large companies while reducing the risk of a US backlash over a digital-only tax.
Support for a broader levy
Concerns about taxation and retaliation
How to tax large technology companies
Support for a broader levy
A broad levy on large companies could raise EU revenue while capturing income from technology firms without singling them out.
Concerns about taxation and retaliation
Some EU capitals reportedly oppose a digital-only tax because they do not want to upset the United States; many also oppose the existing CORE proposal.
Potential US response
Support for a broader levy
Broadening the levy could avoid explicitly targeting US technology companies.
Concerns about taxation and retaliation
The US Trade Representative's office has argued that digital services taxes discriminate against US companies, and Trump has threatened tariffs in response.
Key facts
- Proposal
- Corporate Resource for Europe (CORE)
- Reported revenue threshold
- More than €100 million annually for companies operating in the EU
- Current proposed annual levy
- €100,000 to €750,000 per company
- Reported source
- Financial Times, citing six officials familiar with discussions
- US tariff threat
- Trump threatened a 100% tariff on goods from countries imposing digital services taxes on American companies
- Verification and responses
- Reuters said it could not immediately verify the report; the Commission and several named organizations and companies did not immediately respond to requests for comment
Quotes
An EU official
An unnamed European Union official cited by the Financial Times.
“Some capitals are opposed to a pure digital tax because they don’t want to upset the Americans, and many more are opposed to CORE.”
telegraphindia.com
“The solution is to expand (the tax) to cover pretty much all the big companies.”
telegraphindia.com
Sources
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