The Czech Republic may know how to tax Google and Facebook
Taxation of big tech is a headache worldwide, but emphasising targeted advertising may be the way to go
It’s only a matter of time before European countries start taxing tech multinationals, first individually and then in a co-ordinated way. The question really is how digital taxes will work, and so far, the Czech Republic appears to have the best idea. It became clear in March that France’s push for a Europe-wide tax on Big Tech’s local revenues would fail for now. Germany torpedoed it because of fears of US retaliation against European multinationals, especially German car makers, and the EU is now waiting for the Organisation for Economic Co-operation and Development (OECD) to come up with a global plan. The OECD’s most recent document on the issue reflects an intense deliberative process that could go on for quite a while. In the meantime, individual European countries are trying out different approaches. France’s idea is to claim 3% of revenue generated locally by large companies running digital intermediary platforms (such as Uber or Airbnb) or online advertising businesses. Aus...
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