The European Commission is considering an expanded CORE framework that would impose annual lump-sum taxes on large companies, including major technology firms, as an alternative to a standalone digital services tax.
The European Commission is developing a revised approach to capture tax revenue from major technology companies without openly targeting American firms. Rather than creating a standalone digital services tax, Brussels wants to expand its Corporate Resource for Europe (CORE) proposal to apply to all large corporations operating within the EU.
Modified CORE framework
The CORE proposal would require any company with annual revenue exceeding EUR 100 million to contribute an annual lump-sum tax. Under the current structure, these contributions range from EUR 100,000 to EUR 750,000 per company.
The Commission is now working on modifications that would widen the scope significantly. This approach addresses concerns from several EU member states who fear direct digital taxes would provoke a strong American response.
Political backdrop
The timing is sensitive. President Donald Trump threatened 100% tariffs in June 2026 against any country imposing digital services taxes targeting American companies. The US Trade Representative’s office has consistently argued that such levies discriminate against American tech firms, which dominate the sector. Companies affected by the talks include Apple, Meta, and Google.
Why the pivot
An EU official told the Financial Times that the expanded corporate tax solution represents a middle ground. According to sources familiar with the discussions, multiple member states remain opposed to a pure digital tax due to concerns about American retaliation, while many also resist the original CORE structure.
Broadening the tax to encompass all large corporations operating in the EU allows the bloc to raise revenue without appearing to single out American technology companies.
