There is still no agreement to tax multinational tech companies


There is still no agreement to tax multinational tech companies

According to the OECD, the COVID-19 epidemic is part of the delay in the development of a multinational technology company tax agreement that 137 countries around the world are trying to achieve.

Illustration. (Source: Reuters)

The multinational tax agreement that 137 countries around the world are trying to achieve will not be able to “come into existence” in 2020.

The head of the OECD’s tax policy agency, Pascal Saint-Amans, published the information in the context that many governments are under pressure from the public for policy-making over their tax avoidance strategies. major US technology corporations like Google, Amazon, Facebook and Apple.

In the announcement dated October 12, Mr. Pascal Saint-Amans said that the parties have almost agreed on the ideas to build the agreement, but so far there has not been a specific document.

The OECD hopes to finalize a draft tax proposal document by 2021.

This is partly due to an acute epidemic of respiratory infections, COVID-19, which delayed this process.

In addition, he acknowledged that efforts to build this agreement still faced fierce opposition from the US, while the negotiation process lasted for two years on how to ensure the “giants” are Technology has to pay fair tax rates in the countries where it operates, even if its headquarters are not located.

Current US technology companies include Google, Amazon, and Facebook Apple are being accused of profiting in many low-tax countries.

Failure to have a global tax regulation for multinational technology companies may lead some countries to push themselves on single tariff policies for them.

Most recently, on October 11, Indonesia asked 8 companies, including Microsoft and Alibaba Cloud – a subsidiary of Alibaba, to pay 10% value added tax (VAT).

Some European countries like France and the UK have also announced their own tax policies when there is no global agreement to tax multinational technology companies.

Design by NewsLax