EU announces revenue tax on tech companies

According to the French Finance Minister Bruno Le Maire, revenue tax on tech firms will be between 2% and 6% per year. This rate is only a starting point, and will be adjusted in the future.

Although large tech firms such as Amazon, Google and Facebook are not based in Europe, this tax rate is based on the location of their customers. Large tech companies are often criticised for evading taxes using sophisticated methods, such as transferring profits to low-tax countries such as Ireland or Luxembourg. This is the reason why the EU has proposed to introduce tax on revenues instead of profits.