Digital taxes toughening

         

Amazon, Google and Facebook will pay more taxes if EU implements new digital tax propolsals.

As we all know, currently tax system is not perfect, because it has lots of pitfalls and such big corporations as Google, Uber, Amazon, ect. use it without shame. For instance, Facebook, is the largest social networking service in the world, earned £1.3bn in UK and paid only £15.8m in tax in 2017. That is even less then 1% of their revenue. So that, to the opinion of EU commision the tax system must be revised.

They suggest implementing taxes based on not only staff presence, but also company’s “digital presence”. The Guardian says that “digital presence” means that a company has more than 100 000 users or more than £6m income per year, or it will have more than 3000 signed contracts. Moreover, thay want to take 3% out of selling of advertising space to companies that have more than €750m revenues worldwide and €50m in EU.

I think it is a good trend for two main reasons:

  1. The taxes will generate €5bn for EU every year.
  2. It will make things right, because traditional companies pay 23.2% from their revenue compared with avarege 9.5% of digital ones.

As for me, I totally agree with EU and think that it is not fair when such enterprises make thousands of millions dollars and pay less than traditional corporations. Despite the fact, that they don’t have physical presence, they still make signficant impact on it via huge communication flow. Digital space must be controlled, because it can influence people’s behaviour and purchase intent that can bring additional money to traditional corporations that are physically exist.

 

 

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Khoruzhyi Andrii

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