If the EU’s new rules are adopted this week, and apply to Norway,Google and Facebook may have to pay more than NOK 150 million in Norwegian digital tax.
As of today, internet giants can choose which country they want to report their revenues to, and many have chosen low-tax countries like Ireland, the Netherlands or Luxembourg. This leads to, among other things, Norwegian tax authorities hardly ever seeing anything the billions in income derived by companies through advertising
sales in Norway.
But when the EU Commission announced taxing large online companies, the tax bill to Norway and other European countries could be multiplied, wrote Dagens Næringsliv newspaper (DN).
According to the British Financial Times newspaper, the EU proposes to impose 3% on local advertising revenues. At the same time, estimates from the media agency group, ‘GroupM’ showed that Google and Facebook will trade for NOK 5.8 billion in Norway in 2018. If the new proposal is adopted, and these estimates are correctly based, the two companies, according to DN, would have to pay out a total of NOK 174 million in Norway alone.
© NTB Scanpix / #Norway Today