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Austria to implement digital tax for tech giants GAFA

EUdebates Team by EUdebates Team
29/12/2018
in Economy
Reading Time: 1 min read
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GAFA logos Google, Apple, Facebook, Amazon Europe
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Austrian Chancellor Sebastian Kurz announced plans to impose a tax by the beginning of January on large internet and technology companies.

GAFA: Google – Amazon – Facebook – Apple

“In addition to an EU-wide move, we’ll also act on a national level. We will introduce a digital tax in Austria,” Kurz said.

“The aim is clear — to tax companies that generate huge profits online, but pay hardly any tax on them, such as Facebook or Amazon.”

The European Commission estimates that such firms pay a tax rate on their profits of 9 percent on average, compared to 23 percent for traditional companies.

France will start taxing the big US technology companies GAFA from January 1st. French Economy Minister Bruno Le Maire estimates the new tax would raise €500 million in 2019.

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