The European Commission (EC) announced on Friday that it plans to propose new tax regulations in 2018 to tax digital companies such as Google, Amazon, Facebook, and Apple, whose revenue will be used to offset the amounts that these companies would be failing to pay to the authorities tax authorities.
ECJ President Jean-Claude Juncker told a press conference at the end of an informal summit of European leaders that Brussels will bring forward these initiatives next year in favor of a “fair and effective” levy.
A proposal led by France, with the support of Spain, Germany, and Italy, aims to introduce a tax on the turnover of large digital companies whose collection will offset the amounts that these companies would be failing to pay to the tax authorities.
French President Emmanuel Macron said today at a press conference that the idea is supported by 19 countries, “which shows a real momentum” in favor of the proposal.
Macron compared to progress in this area to the end of banking secrecy, which “everyone has understood is in the general interest.”
However, countries such as Ireland and Malta, which offer an advantageous tax regime for companies, have shown some reluctance.
Irish Prime Minister Leo Varadkar criticized the proposal and made clear that the solution is not to impose more rules, but “the opposite”.