Brussels eyes tax on large firms to target Big Tech, FT reports

• The proposed changes to the 'Corporate Resource for Europe' (CORE) would require companies with €100+ million annual EU revenue to pay lump-sum taxes, expanding from the current €100,000-€750,000 fixed levy
• President Trump previously threatened 100% tariffs on countries imposing digital services taxes on American companies, which the US argues discriminate against US tech firms
• EU officials indicate some member states oppose a pure digital tax to avoid upsetting the US, leading to consideration of a broader corporate tax covering all large companies

Summary: Brussels Considers Broad Corporate Tax Targeting Big Tech

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

Key Details:

Brussels is revising its "Corporate Resource for Europe" (CORE) proposal to require all companies with EU revenues exceeding €100 million ($112.32 million) annually to pay lump-sum tax contributions. The current CORE framework mandates fixed annual levies between €100,000 and €750,000, capturing only minimal portions of multinational earnings.

Target Companies:

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

Political Context:

The strategy reflects EU member states' divided positions. According to an EU official quoted in the report, "Some EU capitals are opposed to a pure digital tax because they don't want to upset the Americans." The broader corporate tax represents a compromise solution.

U.S. Response Risk:

President Trump previously threatened 100% tariffs on goods from countries imposing digital services taxes on American companies. The U.S. Trade Representative has consistently argued such levies discriminate against U.S. firms, which dominate the global tech sector.

Verification Status:

Reuters could not immediately verify the FT report. The European Commission, affected companies (Apple, Google, Meta), and industry representatives did not respond to comment requests outside business hours.

The proposal represents Brussels' latest attempt to capture tax revenue from multinational tech giants while navigating potential trade retaliation from Washington.