Germany Targets 10% Tax on Global Tech Companies

The logos of the companies Meta and Google

 Germany Targets 10% Tax on Global Tech Companies

The German government is preparing plans to impose a 10% tax on global tech giants such as Meta and Google, a move that could heighten transatlantic trade tensions.

Germany's Commissioner for Culture and Media, Wolfram Weimer, told Stern magazine on Thursday that the new government is drafting a digital tax bill targeting global online platforms. However, alternatives such as voluntary commitments by affected tech companies to pay more taxes in Germany are still being considered.

“We are serious about this,” he said, noting that he has invited Google executives and key industry representatives to discussions about alternatives to the tax—potentially including voluntary contributions. This is according to a report by the Financial Times, viewed by Al Arabiya Business.

Germany is evaluating a digital platform tax whose revenues, if implemented, would be used to support the country’s media landscape.

A German digital tax on companies like Google, Meta, Facebook, and Instagram could add strain to transatlantic relations, especially at a time when former U.S. President Donald Trump accused the European Union of unfair treatment of American companies and threatened retaliatory tariffs.

However, Weimer appeared unfazed by potential U.S. backlash. He said the German government has already begun the legal process to impose the tax, which could focus specifically on digital advertising revenues in Germany from platforms such as Google and Meta. The tax rate could reach 10%.

Weimer noted that the proposed law might be based on the Austrian model, which imposes a 5% tax on digital advertising services by very large platforms. He praised Austria’s tax as “simple and effective,” but said Germany could go higher, calling a 10% rate ‘moderate and justified.’

Several other EU countries, including France, already levy digital taxes on tech firms.

Weimer emphasized that the tax should apply to all tech platforms that generate billions in revenue in Germany and profit from third-party content.