The European Commission unveiled on Wednesday a new proposal to tax big technology companies whose revenues exceed €750 million. According to data from the European Union’s legislative branch, digital companies pay half as much than traditional businesses and will now be subject to a 3% levy based on where its users are rather than where the company’s headquarters is located.
"Our pre-internet rules do not allow our member states to tax digital companies operating in Europe when they have little or no physical presence here," commissioner for taxation, Pierre Moscovici, said in a statement. Under the new proposal, a company like Amazon would be taxed in every country where consumers use its services.
These rules would expire once the European Union implements long-term proposals to resolve the issue.
