EU to propose 3 pct digital tax on turnover of large firms - draft

The tax, if backed by EU states and lawmakers, would only apply to large firms with annual worldwide revenues above 750 million euros ($924 million) and annual "taxable" revenues above 50 million euros in the EU.REUTERS  |  March 15, 2018, 23:19 IST
Activists from the anti-globalisation organisation Attac hold placards reading "Stop the tax tricks" during the protest in front of an Apple store in Germany, March 10, 2018. REUTERS/Ralph Orlowski
Activists from the anti-globalisation organisation Attac hold placards reading "Stop the tax tricks" during the protest in front of an Apple store in Germany, March 10, 2018. REUTERS/Ralph Orlowski
BRUSSELS, - Large companies with significant digital revenues in the European Union could face a 3 percent tax on their turnover under a draft proposal from the European Commission seen by Reuters.

The proposal, expected to be adopted next week and still subject to changes, has been modified from an earlier draft which put the planned corporate rate between 1 and 5 percent .

The tax, if backed by EU states and lawmakers, would only apply to large firms with annual worldwide revenues above 750 million euros ($924 million) and annual "taxable" revenues above 50 million euros in the EU.

The tax is presented in the draft as a temporary measure that would only be implemented if no deal is found on a more comprehensive solution which would tax the digital profits of companies in the countries where they are made, rather than where the firms are headquartered as is the case now.

($1 = 0.8117 euros)