March 21, 2018
Tech giants including Google, Amazon and Facebook could soon face higher taxes in Europe.
The European Commission — the executive arm of the European Union (EU) — unveiled plans Wednesday to tax companies where they actually generate business, rather than where they are headquartered.
The proposed changes to how digital businesses are taxed could substantially increase the amount such firms have to pay in taxes.
According to data from the European Commission, digital companies pay on average an effective tax rate of 9.5 percent — compared to 23.2 percent for traditional businesses.
“The digital revolution has overturned our economies and also shaken profoundly the way businesses create value today,” Pierre Moscovici, the EU’s commissioner for taxation said at a press conference on Wednesday, arguing that the current rules are outdated.
This article was posted: Wednesday, March 21, 2018 at 8:44 am