The European Union’s Institutions are instituting a new Post-Pandemic Recovery Fund plan that will introduce a new business tax. This levy will particularly affect European companies.

Last year, the 27 Member States reached an important agreement to borrow an amount of €750 billion for a post-pandemic recovery fund. This loan is expected to be paid back during the next 30 years, mostly coming from tax levies on the digital economy and on CO2 emissions.

This agreement, which has been crafted by the Organization for Economic Cooperation and Development (OECD), traces new pandemic recovery plans funded by a minimum tax rate of 15%. According to the Executive Vice President of the European Commission for a Europe Fit for the Digital Age, Margrethe Vestager, companies which pay very little or nothing in taxes, will contribute in the societies where they do their business, if the tax authorities have the resources to claim the taxes.

Vestager added that the European Commission is preparing to make a formal announcement on July 14, to explain the details of the plan. She also confirmed that this agreement will be addressed to many European companies and concluded by saying the companies should see it as a normal cost of doing business in Europe.