Global Digital Tax Plan Expected in October
This fall, OECD is expected to produce a “unified approach” to digital economy taxation
The Organization for Economic Cooperation and Development (OECD) is expected to produce a “unified approach” to taxing the digital economy in October. The OECD plan is reportedly focused on allocating more corporate profits to countries where multinational corporations have a large market presence. That means some countries are going to see more tax revenue under the plan than others.
Because most of the tech companies that would be impacted are based in the U.S., the Trump administration has said the tax unfairly targets American companies like Apple, Amazon, Facebook and Google.
Recently, American and French negotiators reached a deal on how to handle France’s new digital tax, which French officials said is temporary until the OECD comes up with a broader agreement that works for other European countries. The French digital tax is a 3 percent tax on yearly revenues of tech companies that make at least 750 million euros annually and provide services to users in France.
As part of the deal made between French Finance Minister Bruno Le Maire, Treasury Secretary Steven Mnuchin and White House economic advisor Larry Kudlow, France has agreed to repay U.S. tech companies the difference between the French tax and the digital tax being drafted by the OECD.
This article was provided to OSAE by the Power of A and ASAE's Inroads.