FT: EU weighs broad corporate levy to raise taxes on US tech groups
Version 2: New tech-outlet coverage adds detail on the “Corporate Resource for Europe” (CORE) proposal, its current €100,000–€750,000 fee range, the undetermined size of the levy, the US Trade Representative's criticism, and an EU official's explanation, while one outlet attributes the reporting to Reuters rather than the Financial Times.
In short
The European Commission is considering a new mechanism to raise more tax revenue from large US technology companies without singling them out as a separate category, the Financial Times reported, citing unnamed sources. Under discussion is an annual fixed contribution from all companies operating in the EU with revenue above €100 million, discussed as part of the “Corporate Resource for Europe” (CORE) proposal and requiring the agreement of all 27 member states. The US Trade Representative's office calls such fees discriminatory, and the size of the levy has not been determined.
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The European Commission is considering a new mechanism for taxing large companies that would increase revenue from US technology corporations without placing them in a separate category, the Financial Times reported, citing unnamed sources. The reports were carried by TASS, Kommersant, RBC, Vedomosti, and later by the tech outlets CNews and 3DNews; CNews attributed the same material to Reuters rather than the FT. [ 1 , 2 , 3 , 4 , 5 , 6 ]
According to Kommersant, Vedomosti, CNews and 3DNews, the discussion centres on an annual one-off tax contribution to be paid by all companies operating in the EU with annual revenue of more than €100 million, or about $112.32 million. The levy is meant to apply to companies of all types, not only those specialising in digital services. CNews and 3DNews report that the debate concerns the European Commission's “Corporate Resource for Europe” (CORE) proposal, which in its current form provides for a fixed annual fee of €100,000 to €750,000 — an amount 3DNews says covers only a small part of large multinationals' profits. [ 2 , 4 , 5 , 6 ]
TASS framed the plan as Brussels looking for ways to obtain more revenue from Apple, Meta (designated extremist and banned in Russia) and Google without singling them out. Vedomosti reported that the proposal is among new sources of EU budget revenue that together should bring in about €60 billion a year from 2028, and that officials hope to avoid a separate digital services tax opposed by the administration of US President Donald Trump. [ 1 , 4 ]
Kommersant cited one source as saying that some EU countries oppose a tax covering only the digital sphere because they do not want to damage relations with the United States, while other EU states fear a broad levy would catch their own mid-sized and large non-digital companies. Among the options under discussion, the newspaper reported, is raising the minimum revenue threshold so that medium-sized businesses are excluded. Kommersant, Vedomosti and 3DNews wrote that the measure would require the consent of all 27 EU member states. [ 2 , 4 , 6 ]
An EU official told the Financial Times, as cited by CNews: “Some EU capitals oppose a purely digital tax because they do not want to upset the Americans, and many others oppose CORE.” 3DNews reported that the size of the fee has not been determined, since the approach must be agreed across all 27 states before a rate is set, and that the office of the US Trade Representative says such fees are discriminatory against American companies. Kommersant stated that the European Commission does not comment on the reports. [ 2 , 5 , 6 ]
Vedomosti reported that on 26 June Trump threatened European countries with 100% tariffs if they introduce taxes on digital services for American companies, saying such levies are aimed at Apple, Google and Meta. He had also threatened France with 100% duties on wine and champagne if Paris did not cancel a 3% tax on the revenue of large technology companies in force since 2019, the outlet said. Kommersant noted that the EU had earlier discussed a tax on revenue from digital advertising, which, by Ursula von der Leyen's estimate, could hit American high-tech corporations hard. [ 2 , 4 ]
Why it matters
The proposal is part of Brussels' search for new EU budget revenue and a way to capture more tax from US tech groups while avoiding a direct clash with Washington over digital services taxes. It opens a debate among member states over whether the levy should be broad or aimed only at digital companies, and any measure needs unanimous backing to take effect. The reports remain unconfirmed by the European Commission.
Key facts
- The European Commission is considering a new tax mechanism for large companies to raise revenue from US technology groups without placing them in a separate category, the Financial Times reported, citing unnamed sources. [ 1 , 2 , 3 , 4 , 5 , 6 ]
- The discussion covers an annual fixed contribution by all companies operating in the EU with annual revenue above €100 million (about $112.32 million), applying to companies of all types, not only digital services. [ 2 , 4 , 5 , 6 ]
- CNews and 3DNews link the discussion to the European Commission's “Corporate Resource for Europe” (CORE) proposal, which in its current form provides a fixed annual fee of €100,000 to €750,000. [ 5 , 6 ]
- The proposal is one of new EU budget revenue sources that together should bring in about €60 billion a year from 2028, according to the FT report cited by Vedomosti. [ 4 ]
- Some EU states fear a broad levy would also hit mid-sized and large non-digital European companies; raising the revenue threshold is among the options discussed. [ 2 , 4 , 5 , 6 ]
- The measure would require the consent of all 27 EU member states. [ 2 , 4 , 6 ]
- US President Donald Trump threatened European countries with 100% tariffs if they introduce digital services taxes on American companies. [ 4 , 6 ]
- The office of the US Trade Representative says such fees are discriminatory against American companies, according to 3DNews. [ 6 ]
Confirmed by several sources
- The European Commission is considering a mechanism to raise tax revenue from large US technology companies without singling them out as a separate category. [ 1 , 2 , 3 , 4 , 5 , 6 ]
- A levy is under discussion for companies operating in the EU with annual revenue above €100 million. [ 2 , 4 , 5 , 6 ]
- The measure would require agreement from all 27 EU member states. [ 2 , 4 , 6 ]
- Donald Trump has threatened 100% tariffs against countries introducing digital services taxes on US companies. [ 4 , 6 ]
- The discussion is taking place in the framework of the European Commission's CORE proposal, which currently provides for a fixed annual fee. [ 5 , 6 ]
Still unclear
- Whether Apple, Google and Meta would actually fall under the new levy. The reports say the design aims to capture revenue from such companies without naming them, and Vedomosti writes only that they may be covered; no final text exists.
- The final rate, form and revenue threshold of the contribution. Documents describe an annual fixed contribution and a €100 million threshold as under discussion, with a higher threshold among the options; 3DNews says the size of the fee has not been determined and cites figures of €100,000 to €750,000.
- Whether the 27 EU member states will agree to the measure. Documents say unanimous consent is required and that some states object to a digital-only tax while others fear the broad version; no vote or agreement is reported.
- Who first reported the details. TASS, Kommersant, RBC, Vedomosti and 3DNews attribute the report to the Financial Times, while CNews attributes the same material to Reuters.
- The European Commission's position. Kommersant states that the European Commission does not comment on the reports; no official response appears in the other documents.
What local media are saying
Timeline, local time
- TASS reports, citing the FT, that Brussels is seeking ways to get more revenue from Apple, Meta and Google without singling them out. [ 1 ]
- Kommersant publishes details of the reported plan, including the €100 million revenue threshold and EU states' objections. [ 2 ]
- RBC reports the EU idea to introduce a general corporate tax and avoid US criticism. [ 3 ]
- Vedomosti adds the €60 billion annual budget revenue target from 2028 and earlier Trump tariff threats. [ 4 ]
- CNews reports the plan as targeting Apple, Google and Facebook owner Meta, and cites the CORE proposal and an EU official's explanation. [ 5 ]
- 3DNews adds the US Trade Representative's criticism, the undetermined fee size and the 100% tariff threat. [ 6 ]