Brussels is considering a new tax on large companies operating in the European Union as it looks for additional revenue while seeking to avoid escalating trade tensions with the United States, the Financial Times reported.
The proposed levy could target companies with annual revenue above €100 million, potentially bringing some of the world’s largest technology companies into its scope. The approach would allow the European Union to raise more money from major corporations without introducing a tax explicitly targeted at digital companies.
The move comes as the EU explores new sources of funding for its budget. A broader corporate levy could increase contributions from major technology groups, including companies such as Apple, Google and Meta, which generate substantial revenues from European markets.
EU policymakers are also weighing the potential trade implications of a digital-specific tax. Washington has previously opposed digital services taxes imposed on major US technology companies, raising concerns that such measures could contribute to further disputes between the two sides.
The proposed corporate levy is part of a wider package of potential new EU revenue sources expected to generate significant funds from 2028. However, the plan could face resistance from member states, with any new EU-level tax requiring agreement from all 27 countries.
The discussions highlight the EU’s continuing effort to ensure that large multinational companies contribute more to public finances while balancing revenue needs with concerns over competitiveness and international trade.
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