Brussels is looking for a way to make tech companies contribute more to EU funding without triggering a trade dispute with the US. Instead of a digital tax, the proposal is an annual lump sum for all very large companies. Apple would be affected, but not alone.
According to a report in the Financial Times, the European Commission is considering revising an existing proposal for a corporate levy. The newspaper cites EU officials as its source. The aim is to collect more money from large tech companies like Apple, Google, and Meta without singling them out.
The basis is the so-called Corporate Resource for Europe, or CORE for short. The Commission proposed it in July 2025 as one of five new sources of revenue for the EU budget, together with the draft long-term budget for 2028 to 2034.
Key Facts at a Glance
- According to the Financial Times, the EU Commission is considering revising its proposal for an annual flat-rate levy on large companies.
- The levy is intended to cover all very large corporations instead of specifically targeting digital services, thus avoiding a conflict with the USA.
- Under the current proposal, companies with net sales of 100 million euros or more would pay between 100,000 and 750,000 euros per year.
- The amount of future contributions has not yet been determined; first, the 27 member states must agree on the principle.
This is how the current proposal works
In the current draft, CORE applies to companies with their tax domicile in the EU, as well as to EU permanent establishments of groups from third countries, provided their annual net turnover exceeds €100 million. Instead of a percentage-based tax, a fixed lump sum is payable, depending on the turnover bracket. Member States would collect this tax on behalf of the EU.
| Annual net sales | Annual contribution |
|---|---|
| up to 100 million euros | none |
| over 100 to under 250 million euros | 100,000 euros |
| 250 to under 500 million euros | 250,000 euros |
| 500 to under 750 million euros | 500,000 euros |
| from 750 million euros | 750,000 euros |
Overall, the Commission expects, according to its Calculations for the Council with approximately 6.8 billion euros per year.
Why Brussels wants to restructure
There were two criticisms of CORE, which the restructuring, according to the Financial Times, is intended to address. Firstly, the levy would have affected many medium-sized European companies. Secondly, a corporation with billions of euros in revenue pays the same amount at the top tier as a company with just over 750 million euros.
The new version is therefore intended to adjust thresholds and contributions so that only very large corporations are affected and receive more money from them. Because the levy does not target digital services, the Commission hopes to avoid triggering retaliatory tariffs from Washington. According to the Financial Times, the White House reacted to the earlier approach, which was more focused on digital services, with precisely such threats.
Where Apple would be affected
Apple operates several companies in the EU, including its European distribution center in Ireland, and its revenue clearly places it in the highest contribution bracket. Under the current model, the contribution per company would still be limited to €750,000 per year. Whether and how much this will change depends on the new contribution rates, which the Commission has not yet determined.
Such initiatives already exist at the national level: In March , Poland planned its own tax on services provided by large tech companies. An EU-wide flat rate would not automatically replace such national initiatives, but it pursues a different approach: It is based on the revenue of the entire company and not on specific services.
Why I see the tax for Apple as a side issue
I consider this a budgetary matter for the EU, not an Apple issue. Apple is one of many corporations that would fall under the highest tax bracket, and the current maximum flat rate is negligible compared to Apple's business in Europe. It will only become interesting when the Commission specifies concrete new amounts.
Furthermore, there's the long road ahead: A new source of revenue for the EU budget requires the approval of all 27 member states in the Council and then ratification by the national parliaments. The Commission itself is aiming for January 1, 2028, for its new revenue sources. I therefore don't expect a restructured levy to take effect any sooner.
Should the EU tax very large corporations like Apple more heavily – or do you fear that the costs will ultimately be passed on to consumers through higher prices? Let us know in the comments where you would draw the line.
