EU proposes 3% tax on Google, Facebook, Amazon, etc

dollarEuropean Commission proposed rules on digital companies such as Google, Facebook and Amazon to pay 3 percent tax on their turnover on various online services in the European Union, bringing in an estimated $6.1 billion, Reuters reported.

The proposed tax would apply to large firms with annual worldwide revenue above 750 million euros or $920.9 million annual “taxable” EU revenues above 50 million euros.

The tax, designed as a short-term measure before the EU finds a way to tax profits based on where they do business, could also encompass other U.S. firms such as Airbnb and Uber.