Skip to main content
CLOSE

Charities

Close

Corporate and Commercial

Close

Employment and Immigration

Close

Environmental, Social, and Corporate Governance

Close

Fraud and Investigations

Close

Individuals

Close

Litigation

Close

Planning, Infrastructure and Regeneration

Close

Public Law

Close

Real Estate

Close

Restructuring and Insolvency

Close

Energy

Close

Entrepreneurs

Close

Private Wealth

Close

Real Estate

Close

Tech and Innovation

Close

Transport and Infrastructure

Close
Home / News and Insights / News / New 3% web tax to hit technology giants

A new web tax that will hit the likes of Google and Facebook has been proposed by the European Commission (EC).

The EC’s first proposal targets a reform of the corporate tax rules in order that profits are registered and taxed where businesses have “significant digital presence”. The second proposal is an interim tax which covers the key digital activities that are not presently taxed in the EU.

The proposed 3% tax on turnover is expected to earn an estimated €5 billion.

The tax would only be applicable to certain online revenue streams such as online advertising, online selling, or the sale of collected user data, and for businesses with annual worldwide revenues above €750 million and EU revenues above €50 million.

With several countries having either implemented or suggested implementation of individual policies, such as Italy’s web service tax, the EC is looking to enforce a uniform digital tax structure across the EU which would be more practicable than a disjointed collection of digital taxes that could weaken the single market.

The UK has generated its own proposals on digital taxation. These are similar to the EC’s proposals in that both involve expanding taxing rights to encompass digital presence and an interim revenue tax. If successfully implemented, the EC’s proposed digital tax could overlap with Brexit. However, even if implementation occurs after the UK has left the EU; the likeness of the UK’s proposed digital tax could mean that the UK’s preference is to use the EC’s proposal rather than drafting its own.

Related Articles

Our Offices

London
One Bartholomew Close
London
EC1A 7BL

Cambridge
50/60 Station Road
Cambridge
CB1 2JH

Reading
The Anchorage, 34 Bridge Street
Reading RG1 2LU

Southampton
4 Grosvenor Square
Southampton SO15 2BE

 

Reading
The Anchorage, 34 Bridge Street
Reading RG1 2LU

Southampton
4 Grosvenor Square
Southampton SO15 2BE

  • Lexcel
  • CYBER ESSENTIALS PLUS

© BDB Pitmans 2024. One Bartholomew Close, London EC1A 7BL - T +44 (0)345 222 9222

Our Services

Charities chevron
Corporate and Commercial chevron
Employment and Immigration chevron
Environmental, Social, and Corporate Governance chevron
Fraud and Investigations chevron
Individuals chevron
Litigation chevron
Planning, Infrastructure and Regeneration chevron
Public Law chevron
Real Estate chevron
Restructuring and Insolvency chevron

Sectors and Groups

Private Wealth chevron
Real Estate chevron
Transport and Infrastructure chevron