EU tells American companies to pay their taxes

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Photo: Art and Build Architect

The EU will force big companies such as Apple, Amazon, Google etc. to pay up their taxes. Under the new plan that the Commission is bringing companies will pay a 3% tax on their online services that could bring an estimated 5 billion euros ($6.1 billion).

The plan seems certain to pass by lawmakers and the tax would apply to a wide array of companies whose estimated worldwide revenue is above 750 million euros ($920.9 million) annual taxable European revenues above 50 million euros.

The plan is designed for activities that the users have an active role such as online advertising, search engines, social media, online trading or the sale of data regarding users.

This legislation comes as the US imposes its own tax reform and threatens the EU with a trade war, along with the ensuing scandal in Facebook where millions of data from users were used in order to influence the 2016 US elections in favor of Donald Trump.

Also, antitrust authorities have already started investigating the aforementioned companies such as Google, Amazon and Apple, that they have accused that are biased towards the Silicon Valley companies.

But even though the legislation seems poised to pass there is deep division inside the EU since for it to pass it needs the backing of the European Parliament and the 28 EU countries.

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