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Germany drafts bill for 10% tax on large digital platforms

The culture ministry is drafting the measure to seek voluntary contributions by tech firms in response to U.S. trade warnings.

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Overview

  • Germany’s culture ministry has prepared legislation to impose a 10 percent levy on major digital platforms that use domestic media content.
  • Culture Minister Wolfram Weimer has invited Google executives and other industry leaders to discuss voluntary contributions as an alternative to the tax.
  • Chancellor Friedrich Merz signaled that Germany will no longer be lenient on American tech firms but stressed a preference for cooperative solutions.
  • The U.S. Trade Representative’s office has previously investigated countries with digital service taxes and President Trump has vowed to defend America’s tax base from foreign levies.
  • If enacted, Germany would join nations such as Britain, France, Italy and Canada in implementing digital taxes aimed at curbing perceived tech giant tax evasion.