No global digital tax by end-2020 would mean chaos, warns France | HT Tech

No global digital tax by end-2020 would mean chaos, warns France

Failure to reach a global deal on where and how much to tax digital giants such as Google, Amazon or Facebook would result in many digital tax regimes emerging all over the world, France’s finance minister said

By: REUTERS
| Updated on: Feb 24 2020, 11:20 IST
Failure to reach a global deal on where and how much to tax digital giants such as Google, Amazon or Facebook would result in many digital tax regimes emerging all over the world, France’s finance minister said
Failure to reach a global deal on where and how much to tax digital giants such as Google, Amazon or Facebook would result in many digital tax regimes emerging all over the world, France’s finance minister said (Pixabay)

Failure to reach a global deal on where and how much to tax digital giants such as Google, Amazon or Facebook would result in many digital tax regimes emerging all over the world, France's finance minister said on Sunday.

It would also likely trigger US retaliatory tariffs, US Treasury Secretary Steven Mnuchin told reporters, underscoring Washington's determination to thwart tax rules planned by France and other countries if no global deal is reached.

You may be interested in

MobilesTablets Laptops
17% OFF
Google Pixel 8
  • Hazel
  • 8 GB RAM
  • 128 GB Storage
24% OFF
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
31% OFF
Google Pixel 7 5G
  • Obsidian
  • 8 GB RAM
  • 128 GB Storage
9% OFF
Google Pixel 7A
  • Charcoal
  • 8 GB RAM
  • 128 GB Storage

Also Read: European Union hails 'fast, ambitious' pace towards digital tax

Also read
Looking for a smartphone? To check mobile finder click here.

Finance ministers and central bankers from the world's 20 biggest economies, the G20, met in Riyadh for talks on economic issues, with digital taxation topping their two-day agenda.

Mnuchin said the issue was being addressed in negotiations with the Organization for Economic Cooperation and Development, and he hoped it could be resolved by the end of the year.

"We've been very consistent in saying we think the digital services tax is discriminatory in nature against digital companies, and specifically a handful of US companies," he said. "The president was clear that we were proceeding with ... reciprocal tariffs."

France and the United States have declared a truce to allow the multilateral talks to reach a conclusion by year-end.

"For the first tine there is wide consensus among the G20 members on the necessity of having a new international taxation system," Le Maire said.

Also Read: India backs OECD move on digital tax

"And we also have to address the key question of minimum taxation and the risk of having a race to the bottom on taxation," he said.

The OECD wants to agree on technical details of such a tax by July.

"There is a consensus to build a solution by the end of 2020," Le Maire said, noting the alternative - no agreement - would create a proliferation of different tax systems making life more difficult for companies.

"Lets be clear - either we have at the end of 2020 an international solution... clearly in the interest of all countries and digital companies, or there is no solution and ... then it will be up the national taxes to enter into force," Le Maire said.

"Instead of having one single, simple solution, we would have many different digital taxes, all over the world."

The United States, home to most of the digital giants, has been wary of committing to a solution on taxing them before a presidential election later this year.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 24 Feb, 11:19 IST
NEXT ARTICLE BEGINS