Germany is drafting legislation for a 10% tax on major digital platforms like Google and Facebook. 

Germany’s Minister of State for Culture, Wolfram Weimer, has announced that the government is preparing draft legislation to introduce a 10% tax on large digital platforms such as Alphabet’s Google and Meta’s Facebook.

The measure targets companies generating significant revenue from digital services within Germany but contributing relatively little in domestic taxes.

Weimer indicated that while legislation is being developed, discussions with affected platform operators are also underway to consider alternatives, including voluntary contributions. He noted that these firms operate with high profit margins in Germany while making limited reinvestments and providing minimal returns to the local economy.

This proposal follows a coalition agreement earlier this year to examine the potential for a digital services levy, although the measure is not currently prioritised on the government’s legislative agenda. The initiative has not yet received formal government approval.

If adopted, Germany would join countries like the UK, France, and India that have implemented similar taxes. The move may increase tensions with the US, where former President Trump has opposed such measures and revived trade investigations in February.

Earlier, the US President Donald Trump signed a memorandum titled “Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties” on 21 February 2025. The memorandum includes renewing Section 301 investigations into foreign digital service taxes (DSTs).