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Google to raise ad fees to cover Austrian tax, says source

VIENNA: American tech big Google will ramp up fees to its advertisers to cowl the prices of a brand new Austrian tax, a supply near the corporate mentioned on Feb 1.

Austria began imposing a 5% levy from Jan 1 on internet advertising revenues of some huge companies – the newest of a string of nations attempting to make sure tech giants pay their manner.

A supply near Google mentioned the agency would add 5% to the invoices of firms whose adverts are clicked on or seen by net customers in Austria, “whatever the location of the advertiser”.

“We’ll be doing that within the second half of the yr,” mentioned the supply.

Officers world wide are grappling with methods to tax tech firms, who usually report earnings in low-tax jurisdictions like Eire or Luxembourg, enraging different governments.

The US has threatened to take motion in opposition to international locations introducing digital taxes, however Austria promised to take care of the levy till a global resolution is discovered.

The Austrian regulation applies to companies with annual gross sales of greater than €750mil (RM3.42bil) – offering at the least €25mil (RM114.04mil) are generated in Austria.

The federal government claims that it has launched “tax equality” between digital and conventional media, which is already topic to the identical levy on promoting revenues.

Austrian newspaper The Commonplace broke the story on Feb 1, publishing excerpts from a German-language e-mail purportedly from Google to its advertisers asserting the rise in charges.

Canada is the newest nation to vow a levy on tech companies after France launched a 3% tax final yr on revenues earned within the nation. – AFP

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