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Germany Advances 10% Digital Tax on U.S. Tech Platforms

The draft sets up talks with platform executives ahead of Merz’s trip to Washington where he is expected to seek assurances against U.S. trade retaliation.

A keyboard is placed in front of a displayed Facebook logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
German official Philip Amthor said 'large digital corporations in particular are cleverly engaging in tax avoidance'
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Overview

  • Culture Minister Wolfram Weimer has drafted legislation to impose a 10% levy on revenue generated by large digital platforms using German media content.
  • Berlin plans to host executives from Google, Meta and other U.S. tech firms to explore voluntary contributions before enacting the statutory tax.
  • The levy reflects a coalition agreement reached earlier this year and follows similar digital service taxes in Britain, France and Austria.
  • Chancellor Friedrich Merz has vowed to end generous tax treatment of American platforms and will raise the issue during his upcoming meeting with President Trump.
  • Washington previously launched Section 301 investigations into countries taxing U.S. technology companies, creating the potential for retaliatory tariffs on German exports.