The European Commission is exploring the introduction of a broad corporate tax scheme aimed at increasing revenues from large companies, including major US technology firms such as Apple, Meta, and Google. This initiative seeks to avoid directly targeting digital services companies to minimize tensions with the United States, following Washington’s warnings of possible retaliatory measures against countries that impose digital services levies.

Officials involved in the discussions, which took place in early October 2026, explained that the proposed tax would apply broadly to all large corporations operating within the European Union, rather than solely focusing on the digital sector. The plan is to adjust an existing proposal known as the Corporate Resource for Europe (Core), which currently requires companies with more than €100 million in EU revenue to pay an annual lump-sum contribution. Revisions could raise thresholds to include only very large companies, increasing the contribution collected from multinational technology firms while limiting the impact on medium-sized European businesses.

The initiative is part of a broader effort to fund the EU’s common budget, with the Core tax expected to contribute alongside four other levies and collectively generate about €60 billion annually starting in 2028. This move comes amid ongoing negotiations among EU member states over budget allocations, as well as mounting fiscal pressures domestically.

Efforts to establish a coordinated global digital tax framework have encountered setbacks in recent years. A 2021 agreement mediated by the Organisation for Economic Co-operation and Development (OECD) aimed to ensure that multinational companies pay taxes where their revenues are generated. However, this agreement stalled following the re-election of former US President Donald Trump in 2024 and is currently viewed by EU officials as effectively defunct.

Within the EU, there is a divergence of views concerning the best approach. Some member states oppose a narrow digital tax to avoid provoking the United States, while many others resist the Core proposal on grounds that it could impose burdensome costs on non-digital companies. Expanding the tax scope to include all large corporations is being proposed as a compromise solution.

Representatives of some US technology companies, such as those organized under the Computer & Communications Industry Association (CCIA), have declined to comment on the proposed measures. As discussions continue, details about the tax, including its structure and exact thresholds, remain under development.