EU preps new tax on digital heavyweights

The European Commission is looking to tax large digital companies’ revenues based on where their users reside, rather than the location of their HQs, at a rate between 1-5%.

A draft Commission document, seen by Reuters, aims to tackle the issue of Amazon, Google and Facebook re-routing their EU profits to low-tax countries such as Luxembourg and Ireland. The document is due to be unveiled next month and is subject to change. The tax would be a temporary measure until a more comprehensive solution is greenlighted.