Briefing note prepared for minister’s talks with industry emerges as France renews drive for pact, including levy on digital advertising by major tech firms
Any new EU tech taxes would be “deeply harmful” to Ireland and could stoke tensions with the US, the Government believes.
A tech levy could hit Irish jobs and the tax revenues generated by US tech giants Apple, Google, Meta, Amazon and Microsoft, according to a briefing note prepared by Department of Enterprise officials in March this year.
The note has emerged as France ramps up a push for a deal on a range of EU-wide taxes, including a levy on tech giants’ online ad revenue.
The Department of Enterprise note was prepared for a March 25 meeting between Minister of State Niamh Smyth and a group of European tech firms, including payment providers Stripe and Revolut, hotel platform Booking.com and taxi app, Bolt.
“Ireland’s position on digital taxation in Europe is defined by a clear and consistent opposition to any EU-wide Digital Services Tax, rooted in our long-standing economic model,” the note says.
“An EU digital tax would be ‘deeply harmful’ to Ireland, given that firms like Apple, Google, Meta, Amazon and Microsoft provide thousands of high-value jobs and significant tax revenue while anchoring Ireland’s status as a global tech hub.”
Apple paid $17.1bn (€14.6bn) in tax to Ireland in its most recent financial year, the highest annual sum from one company in the history of the State. Microsoft paid $6.5bn (€5.6bn), according to US tax filings.
France is leading a push to generate more revenues for the EU’s future budget, including a tax on online ads and a large company levy, which Ireland pushed back on before taking up the six-month EU presidency.
Ireland is now responsible for steering talks on the EU budget. Europe Minister Thomas Byrne will chair a meeting in Brussels to discuss the new levies later this month.
France’s Europe minister told the Irish Independent that the EU should consider a digital levy, which he said should “weigh more” on foreign firms.
While it is not formally on the table in EU budget talks, it has been floated by MEPs.
The European Commission estimates it could bring in €5bn a year, with €90m of that coming from Ireland.
Several EU countries, including France, already tax digital advertising, which has infuriated the US. This summer, US president Donald Trump threatened to put a 100pc tariff on countries with similar levies.
The briefing note for Ms Smyth’s March meeting says Ireland has “consistently opposed” EU-wide digital services taxes (DSTs) and that any new levies on tech firms “should be addressed through a global approach”.
“Ireland also argues that an EU-wide DST would harm the European economy and worsen international trade tensions, particularly with the United States, undermining efforts to strengthen multilateral tax cooperation,” the note says.
The note was obtained following a Freedom of Information request.
The meeting between Ms Smyth, the junior minister at the Department of Enterprise responsible for trade promotion, AI and digital transformation, was requested by the EU Tech Alliance, a lobby group for European firms.
It was set up to discuss Ireland’s priorities during its EU presidency, including a controversial new regulation on addictive social media apps to be unveiled by Ireleand’s EU commissioner, Michael McGrath, by the end of this year.