The European Union is considering a new taxation model for companies operating within the bloc, aimed at increasing tax revenue from major technology firms. The proposal, known as Corporate Resource for Europe (CORE), suggests that companies with annual revenues exceeding €100 million should pay a fixed annual fee.
This initiative is designed as a compromise to avoid potential trade conflicts with the United States. Previously, Donald Trump threatened to impose 100 percent tariffs on countries implementing digital services taxes, which the Office of the United States Trade Representative views as discriminatory against American corporations.
European officials are currently discussing the structure of the CORE proposal to ensure it focuses on large corporations without negatively impacting medium-sized European businesses. By adjusting thresholds and contribution levels, the EU aims to secure higher tax receipts for its budget while addressing regional concerns.
The exact amount of the annual levy has not been finalized, with estimates ranging between €100,000 and €750,000 per company. The European Commission must reach a consensus among all 27 member states regarding the taxation approach before the final rates can be established.
