Germany Says 'No Decision Made Yet' Regarding Taxation of Digital Service Companies Including Apple

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Germany today denied a report that claimed the finance ministry had given up on plans to introduce more taxes on certain "internet giants," like Apple, Amazon, and Google. The taxes are related to a new proposal from the European Commission, which aims to make companies with "significant digital revenues" in Europe pay a three percent tax on such services in the EU (via Reuters).


While Germany "has long been cool" on the plans, a report from Bild recently claimed that Finance Minister Olaf Scholz had "abandoned plans" to implement the taxes on digital companies. Citing confidential finance ministry documents, the report said this was because a "demonization" of these companies was seen as "not productive."

Denying the report, the German finance ministry says there has simply been "no decision made yet" on whether or not Germany will implement the digital tax. Speaking to Reuters, a finance ministry spokesperson explained that Germany is ultimately aiming for "fair taxation of internet companies." A final decision is expected by January 2019.
"There has been no decision made yet by the minister or the ministry on one or more instruments," a finance ministry spokesman said when asked to comment on the Bild report.

"The debate is still ongoing, also among the finance ministers of Europe and the G7/G20 countries. The Federal Government still aims to ensure a fair taxation of internet companies," the spokesman added.
For Apple, such a tax would affect the company's services segment, which remains to be an important revenue driver for the company. These include services like iTunes, the App Store, Mac App Store, Apple Music, iCloud, Apple Pay, and AppleCare.

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Article Link: Germany Says 'No Decision Made Yet' Regarding Taxation of Digital Service Companies Including Apple
 

4jasontv

macrumors 68040
Jul 31, 2011
3,249
3,331
On the one hand lack of taxes help digital goods remain artificially overpriced. On the other sales tax, in its kindest description, is double taxation.
 

Mike MA

macrumors 68020
Sep 21, 2012
2,046
1,679
So this is tax on top of the revenue taxes already collected? Dat's double dipping, man.
No. Apple currently is doing their strongest sales ever in the European Union, but mostly avoids any tax as some few EU members offer tax havens for their own good.

Is it illegal behavior though? No.

Is it morally right that fortunes most wealthiest companies act like this? Especially with the immediate outcome to only park the revenue offshore? No.

It should be invested in education, infrastructure and social welfare - all which is consumed by Apple itself when running its overseas business and sales efforts in those countries.

Not if they avoid most taxes.
True.
 
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Mousse

macrumors 68020
Apr 7, 2008
2,187
3,879
Flea Bottom, King's Landing
No. Apple currently is doing their strongest sales ever in the European Union, but mostly avoids any tax as some EU members offer tax havens for their own good.

Is it illegal behavior though? No.

Is it morally right that fortunes most wealthiest companies act like this? Especially with the immediate outcome to only park the revenue offshore? No.
This is why they need to fix the tax laws. If they added a section in the tax code that states that the digital taxes can be deducted from the income taxes, I would be all for it. The need to fix the tax code, not add more taxes.

We all know big corporations will pull any BS to avoid paying taxes. Put a cap on deductions. Only 10% of their total deduction can be expenses to a certain business partner for example would make it harder to play the shell game.
 

[AUT] Thomas

macrumors 6502a
Mar 13, 2016
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678
Graz [Austria]
So, a special VAT that won't hit any German business... As much as Apple/Google/... deserve it, that isn't the right way. ...much like they want to introduce a nationwide highway toll that Germans get reimbursed via their annual income tax equalization.
 
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