EU’s New Digital Tax: A Big Pay‑Check for Tech Giants!
Picture this—Facebook, Google, and the rest of the big‑tech crew are getting a tax slap in the face. The European Commission’s latest plan will tack on a 3 % levy to any company pulling in more than €750 m worldwide and over €50 m inside the EU. That’s about a €5 bn (£4.4 bn) annual bill for the tech titans.
Why the EU is on the tax hunt
- Huge tax gaps have opened up because digital earnings have no clear rules.
- Brussels wants a stop‑gap rule while bodies like the OECD work on longer‑term fixes.
- Official Pierre Moscovici said the shortfall in public revenue is “serious.”
It’s not a personal vendetta
Moscovici made it clear that the move isn’t aimed at “US or GAFA” (Google, Apple, Facebook, Amazon). He said the decision is about balancing the books for member states, not a finger‑pointing episode.
Where the money will go
Some countries—think the UK and France—have already accused these giants of shuffling profits into low‑tax EU hubs like Ireland and Luxembourg. The new levy is a way to keep the money where it belongs.
