European Commission wants to levy a turnover tax of 0.1% on MNC’s

Is the EU going to create a new monster?

Source NOS (Netherlands) –

EC wants European tax for large companies. The EC will present a number of proposals on 27 May to mitigate the economic consequences of the corona crisis. Companies with a turnover of more than 750 million euros worldwide must pay a European tax if it is up to the European Commission. It would be the first time that Brussels has introduced a direct tax; to date, the Commission itself has no taxation. Multinationals levy 0.1 percent of their turnover. In this way, about ten billion euros could be raised.

The plans of the Commission refer to several European taxes, with the tax on the turnover of large companies yielding the most money. A levy on plastic and a tax on CO2 emissions are also being considered. The committee will also come up with plans to distribute expenditure differently: less money for traditional sectors such as agriculture and regional funds and more for sectors that have been hit hard by the corona crisis.

Source Taxence

Other sources

• NOS.nl
• Tax foundation
• Orbitax

Other references:

• European Commission on New Generation deal announced May 27, 2020
• Financing the recovery plan for Europe  (see section 3 for the reference to tax multinational companies operating in the EU)

 

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