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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Tags: Germany, tax

Top Rated Comments

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25 months ago

In the end they create a new tax for the people - not for the internet companies. The companies just raise the prices.

Isn’t that true of every tax?
Score: 5 Votes (Like | Disagree)
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25 months ago

I think it's time to disband the European Union entirely. It would cause a lot of poorer nations to get hurt, but at this stage it seems like a better alternative to what it is becoming and has become.

The EU is what tries to protect Europeans from the most savage forms of capitalism.
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25 months ago
I think it's time to disband the European Union entirely. It would cause a lot of poorer nations to get hurt, but at this stage it seems like a better alternative to what it is becoming and has become.
Score: 5 Votes (Like | Disagree)
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25 months ago

This tax would be pure thievery. Its a case of a government seeing companies grow hugely successful and thinking "why not take a slice of that for ourselves?".

So like every other tax? LOL

Sure, schools, roads, police and hospitals all pay themselves...
Score: 3 Votes (Like | Disagree)
Avatar
25 months ago

So this is tax on top of the revenue taxes already collected? Dat's double dipping, man.

Not if they avoid most taxes.
Score: 3 Votes (Like | Disagree)
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25 months ago

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.
Score: 3 Votes (Like | Disagree)

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