Re:European Union plans to tax tech giants on local revenue
by tzs on Monday March 05, 2018 @05:06PM
(#16524922)
The article seemed a bit light on details, so it is not clear to me that they mean that tax will be calculated as a percentage of revenue--just that it will be "based on" revenue.
Perhaps they will just use revenue for allocating profits, and then tax based on profits like they currently do? For example, if a company has $1 billion profits based on $2 billion revenue in France and $3 billion revenue in Germany, they could tax based on a similar profits split. The company would owe tax in Germany on $600 million profits and in France on $400 million profits.
Perhaps they will just use revenue for allocating profits, and then tax based on profits like they currently do? For example, if a company has $1 billion profits based on $2 billion revenue in France and $3 billion revenue in Germany, they could tax based on a similar profits split. The company would owe tax in Germany on $600 million profits and in France on $400 million profits.