EU Weighs Expanding Tax on Large Companies in Bid to Capture Revenue from US Big Tech

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3▲0 ▼3Impact / 5
Summary · why it matters

The European Union is considering adjusting its levy on large companies so it can capture revenue from major US technology firms without introducing a digital tax aimed directly at those companies, in order to avoid conflict with the United States. The Financial Times reported today, October 7, citing six EU officials, that the European Commission is weighing changes to its revenue-raising proposal, the Corporate Resource for Europe, or CORE, to find ways to collect more revenue from major US technology companies such as Apple, Meta and Google without targeting them specifically. CORE currently requires companies operating in the EU with revenue of more than 100 million euros a year to pay a flat annual contribution of roughly 100,000 to 750,000 euros, which is seen as collecting only a small fraction relative to the earnings of large multinationals. One EU official said some member states oppose a direct digital tax because they do not want to antagonize the United States, while several other countries oppose the CORE proposal, making an expansion of the measure to cover nearly all large companies one of the options under consideration. A European Commission spokesperson said the commission stands ready to support the Council of the European Union and the European Parliament in reaching agreement on new EU revenue sources, which are important for allocating the budget for joint missions over the next 10 years. The effort comes amid continued tension in trade relations between the EU and the United States. US President Donald Trump has threatened to impose 100% import tariffs on goods from countries that levy digital services taxes on US companies, while the Office of the United States Trade Representative, which has long opposed such taxes, has also threatened retaliatory tariffs on European countries that apply the measure, alleging discrimination against US companies.

Impact on assets 3

Artificial Intelligence▼
Apple Inc.
AAPL
▼ NegativeRegulationrelevance

EU weighs expanding its CORE levy to capture more revenue from large US tech firms including Apple, raising potential tax costs.

Alphabet Inc Class C
GOOG
▼ NegativeRegulationrelevance

EU considers adjusting CORE to collect more revenue from major US tech companies such as Google, increasing regulatory/tax burden.

Spatial Computing / AR/VR▼
Meta Platforms Inc.
META
▼ NegativeRegulationrelevance

EU explores expanding its large-company levy to capture revenue from US Big Tech including Meta, implying higher EU tax exposure.