Brussels reportedly looks to capture Big Tech through tax on large corporations
XLK•Brussels is considering a levy on companies operating in the EU with annual revenue above €100 million, potentially including major US tech groups. The current proposal would set annual contributions of €100,000 to €750,000.
1. Broadening the proposal
The European Commission is considering changes to its Corporate Resource for Europe proposal that would require companies operating in the EU with annual revenue above €100 million to pay a lump-sum tax contribution. The proposal’s current form sets a fixed annual levy of €100,000 to €750,000.
2. Trade tensions
An EU official said some capitals oppose a digital-only tax because they do not want to upset the United States, while many also oppose the current proposal. The Commission said it remains ready to support the Council and European Parliament in reaching an agreement on the new own resources package.
3. US response risk
President Donald Trump threatened in June to impose a 100% tariff on goods from any country that imposes a digital services tax on American companies. The US Trade Representative’s office has argued that such levies discriminate against US companies.
