A new tax formula from the EU
The European Union is considering a revised plan that would require Apple and other major tech companies to make an annual lump-sum payment instead of paying a digital services tax. The goal is to increase the bloc's tax revenue while avoiding a fresh trade dispute with the US administration.
Why a lump sum?
A digital services tax is levied on the revenue companies generate in the EU. In the past, such taxes have been viewed by the US as discriminatory against tech firms and have triggered threats of retaliatory measures. The new proposal suggests a fixed annual payment model to ease that tension.
What it means for companies
Apple and other tech giants are expected to fall within the scope of the plan. How the payment would be calculated and which companies would exceed the threshold remain unclear. The plan would need approval from EU member states before taking effect.
Timeline uncertain
It is not yet known when the proposal might become law or how much Apple could be asked to pay. The company has not made an official statement on the matter.
