The Financial Times reports that the European Commission is considering a revised tax proposal requiring companies with annual EU revenue over €100 million – including Apple – to pay an annual lump-sum contribution. The plan is designed to avoid a trade war with the US, unlike a previous digital services tax that drew opposition.
According to the report, the proposal would apply to all large corporations, not solely digital services companies. The specific amount each company would pay has not been determined; the EU intends to agree on the principle first and then set a rate later.
The EU’s pursuit of its own tax plan follows the collapse of the OECD-brokered global tax agreement after the US under Donald Trump withdrew from it. Apple had supported that international accord.
The Financial Times reports that the EU hopes the revised structure will not trigger US retaliation. The exact lump-sum amount remains unspecified, and it is unclear whether all 27 member states will reach agreement or when the proposal might be implemented.