The United States said it is dropping talks with Europe on a global tax framework for tech companies. In a June 12 letter to finance… Read More »
The United States said it is dropping talks with Europe on a global tax framework for tech companies.
In a June 12 letter to finance ministers in the United Kingdom, France, Italy and Spain, US treasury secretary Steven Mnuchin said that discussions are at an “impasse”.
In early 2019, European governments failed to implement an EU-wide digital tax and took the negotiations to the Organization for Economic Cooperation and Development seeking an international approach.
Since then, the OECD has been working on a solution about multinational companies who manage to find a way to avoid paying taxes. Big tech companies such as Google and Facebook pay most of their taxes in the EU country where they are based. They often pay very little in countries where they run large operations.
“The United States does not want to continue negotiations on digital taxation at the OECD. I confirm that there will indeed be a taxation of digital giants in France in 2020 as in 2019”, France’s finance Minister Bruno Le Maire tweeted.
France was the first European country to implement a digital tax, sparking tensions with the US. The UK, Italy and Spain have developed their own digital tax proposal in case OECD talks fail.
