Spain govt seeks 3% tax on Google, Amazon

Google is one of the large digital companies facing a 3.0 per cent tax bill under a Spanish plan.
Google is one of the large digital companies facing a 3.0 per cent tax bill under a Spanish plan.

The Spanish government has sent a bill to parliament proposing to tax revenues booked by web giants such as Google, Amazon and Facebook in Spain, budget minister Maria Jesus Montero says.

The government proposes to levy a 3.0 per cent tax on large web companies that generate global revenues of more than 750 million euros ($A1.21 billion) per year and more than 3 million euros in Spain, Montero said.

She said the affected companies will have to make the first tax payment in late 2020, adding the delay will allow for international negotiations within the G20 and the OECD.

The tax, which should bring in nearly 1 billion euros a year for state coffers, has long formed part of the ruling Socialist Party's electoral program.

EU politicians are angry that a company such as Google, with an annual revenue of more than $US160 billion ($A239 billion), has been enjoying an effective tax rate in the single digits on its non-US profits.

Australian Associated Press