The European Commission has announced it's plan to implement a digital tax. The plan is, that companies that make a lot of online revenue should pay a 3% tax on turnover. The people behind this move think that the large tech giants pay too little taxes on their revenue. This would affect companies like Google and Facebook. This is a move that would affect these companies a lot. On average these digital firms pay a tax rate of 9.5% compared to the other European companies that pay around 23.3%. These people believe that the U.S. companies are being under taxed and shouldn't get away with it anymore. Many of the digital companies have stated that they are complying with international tax laws. The rate is at 9.5% because these companies are headquartered outside the EU. The EU is arguing that there is a lot of online revenue being made in the EU that should be taxed more than 9.5%. The EU countries are divided on this issue which indicates that this new law many not come to fruition.
Something to keep an eye on. The digital tax proposed by some members of the EU is not yet a done deal. Ireland is HQ to Google and Facebook, so naturally, Ireland is demonstrating support for the companies.
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