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Google Tax: ЕU fights for revenue of big IT

Google Tax: ЕU fights for revenue of big IT

In recent years, the EU has directed its attention to the shortage of taxes from the activities of global IT companies.

Due to EU law IT companies may declare their income in any EU member state. Google, Amazon, Apple and Facebook declare their income in countries with low taxation: Ireland, Luxemburg and Netherlands.

In mid-2018, it became known that the EU intends to impose an income tax for IT companies in the countries of the alliance with a range of 2-6% of the total revenue.

The tax rate is planned to be set depending on the following criteria:

  • Volume of assets
  • Number of employees
  • Revenue