Targeting companies like Alphabet and Facebook: Digital technology companies operating in the European Union could face a 3 percent tax on gross revenue, according to a European Commission proposal seen by Bloomberg.
Previous plans have suggested a levy ranging from 2 percent to 6 percent, as EU countries explore new ways to tax big tech companies like Alphabet and Facebook.
Under the new plan, tech companies with global total revenue of more than 750 million euros ($920 million) and total taxable annual revenue from providing digital services in the EU of more than 50 million euros would be subject to the new levy.
The levy would be increased based on advertising revenue, user revenue, subscription services and revenue from selling data to third parties.
The European Commission expects to raise €5 billion a year from the new tax, according to draft proposals seen by the Financial Times. The plan, which is expected to be put forward on March 21, would need unanimous support from all 28 EU members to come into force.
The levy is not high enough, French Finance Minister Bruno Le Maire said earlier this month:
“It is a starting point. I prefer a law that will be implemented very quickly rather than endless negotiations.”
EU countries such as Ireland with low tax rates could vote against the upcoming bill, as it is currently a favorite destination for tech companies and would not want to share it with the rest of the European Union.
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