Brussels looks to capture Big Tech through tax on large corporations, FT reports

• The proposed 'Corporate Resource for Europe' (CORE) changes would require companies with €100+ million in EU revenue to pay annual lump-sum taxes between €100,000 and €750,000
• President Trump previously threatened 100% tariffs on countries imposing digital services taxes, with US officials arguing such levies discriminate against American tech companies
• EU officials acknowledge some member states oppose a pure digital tax to avoid upsetting the US, prompting the broader corporate tax approach as a compromise solution

Summary

The European Commission is developing plans to tax major U.S. technology companies through a broader levy on large corporations, according to the Financial Times. The initiative aims to increase EU revenues while avoiding direct confrontation with the Trump administration.

Key Details:

Brussels is considering modifications to its "Corporate Resource for Europe" (CORE) proposal, which would require all companies operating in the EU with annual revenues exceeding €100 million ($112.32 million) to pay a lump-sum tax contribution. The current CORE framework imposes fixed annual levies between €100,000 and €750,000, capturing only a fraction of multinational earnings.

Companies Targeted:

Major U.S. tech firms including Apple, Meta, and Google would be affected, though the proposal avoids singling out specific companies or sectors.

Political Context:

The approach represents a strategic shift from direct digital services taxes, which have drawn strong opposition from Washington. President Trump previously threatened 100% tariffs on goods from countries imposing digital taxes on American companies. The U.S. Trade Representative has consistently argued such levies discriminate against U.S. firms dominating the global tech sector.

According to EU officials cited by the FT, expanding the tax to cover most large corporations serves dual purposes: capturing revenue from tech giants while circumventing political resistance from EU member states concerned about antagonizing the U.S.

Status:

The proposal remains under discussion, with six officials confirming the deliberations. Neither the European Commission nor the affected tech companies have commented on the report. Some EU capitals oppose both pure digital taxes and the CORE proposal in its current form.