You are here: Home » Reuters » News
Business Standard

EU to propose new tax on digital firms up to 5 percent of their gross revenues

Reuters  |  BRUSSELS 

(Reuters) - The wants to large digital companies' revenues based on where their users are located rather than where their headquarters are, at a rate between 1 and 5 percent, a draft Commission document showed.

The proposal, seen by Reuters, aims at increasing the bill of firms like Amazon, and that are accused by large EU states of paying too little in by re-routing their EU profits to low-countries such as and

The proposal says that the should be applied to companies with revenues above 750 million euros ($922 million) worldwide and with EU digital revenues of at least 10 million euros a year.

The document is subject to changes before its publication which is expected in the second half of March. The would be a temporary measure until a more comprehensive solution to fair digital taxation is approved, the Commission said.

($1 = 0.8129 euros)

(Reporting by Francesco Guarascio)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 26 2018. 22:24 IST