Apple and other tech giants may have to pay an annual lump sum to the EU under a modified digital services tax plan. The European Commission hopes a revised version of earlier proposals will raise tax revenues without provoking retaliation from the White House. Debates within EU countries have centered on taxes on digital services, with Apple services like iCloud, Apple Music, Apple TV, and Apple Creator Studio cited as examples where significant revenues are earned from EU citizens without necessarily paying European taxes.
Concerns include disproportionate impacts on European companies and threatened US retaliation. The Financial Times reports that Brussels is considering changes requiring all companies operating in the EU with revenue over €100mn a year to pay an annual lump-sum tax contribution. The revised plan would apply to all large corporations rather than singling out digital services companies.
The amount levied on each company has not yet been decided, with agreement sought across 27 EU countries before setting a rate. The original global agreement brokered by the OECD, which Apple supported, collapsed after Donald Trump withdrew the US from it.
Source: 9to5Mac · Summarized by HeadlinesBriefing