Austria’s Federal Council approved a 5% tax on the digital advertising revenues of large tech firms, reported Bloomberg.
The country joins a growing list of jurisdictions launching similar taxes targeting digital revenues generated by large tech firms like Apple Inc. and Alphabet Inc.’s Google.
The levy will be paid by any firm which has €750 million (US$826 million) of revenues worldwide and €25 million (US$27.6 million) of digital advertising revenue in Austria. The tax was already approved by the country’s National Council on September 19 and is part of a wider tax reform package.
Austria expects the new tax to generate €200 million (US$220.8 million) of revenue per year.
The US intends to take trade action against countries that enact taxes aimed at US companies, Chip Harter, deputy assistant secretary for international tax affairs at the Treasury Department, said September 11 at the International Fiscal Association 2019 Congress in London.
Full Content: Bloomberg
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