Spain’s minority socialist government has approved a draft law proposing to tax large internet companies 3 percent of their digital revenue with a view to raising around EUR 1.2 billion a year. The tax, which still requires parliamentary approval, is designed to prevent companies including Google, Amazon, Facebook and Uber from avoiding tax by routing their profits to Ireland and other low-tax states. The tax will be imposed on online advertising, platforms and sales of user data by companies with global revenues above EUR 750 million that bring in a minimum of EUR 3 million in digital services revenue in Spain.
The corresponding bill has been included in Spain’s draft budget for the year and comes after the European Commission's proposed 3 percent tax on the digital revenues of large internet firms stalled following opposition from several member states. “This is about large companies paying where their profit is generated,” said cabinet spokeswoman Isabel Celaa, according to El Confidencial. Stressing that Spain is the first EU country to adopt such a tax, Celaa said it would also counter the "unfair competition" which “privileged” companies enjoy at the expense of traditional businesses and activities.
