A telecom lobby expects an exception for digitalis – ICT realité

A telecom lobby expects an exception for digitalis - ICT realité

Two major telecom lobbying organizations are demanding that telecom companies not be double-taxed by Digitex, which aims to end tax evasion by leading technology companies.

For years, calls have been coming in to tax more of the big tech multinationals in Europe, especially Facebook, Apple, Amazon, Microsoft and Google. In European countries their profit net profit is often very low, so they barely pay taxes or only in the country where they are headquartered. Digitax, also known as the Technical Tax or GAFA Tax, is the response to this call, and the OECD and G20 are currently developing a general approach.

But GSMA, the World Telecom Association, ETNO, and the European telecom lobby, Warning The tax will also affect telecom players. Large multinational companies also offer digital services. In a press release, therefore, they jointly request that exemptions be granted.

Double tax levied

Both are not opposed to the idea of ​​a Digitex, but are already forcing telecom companies to pay higher taxes in addition to VAT, spectral licenses and other local investments.

Their fear is that OECD and G20 plans will certainly eliminate some taxes on digital services, but not specific telecom taxes. This will lead to double taxation for telecom operators.

Local taxes

At the same time, the two lobbying groups claim that most telecom companies operating in different countries are taxed on the profits of each. Therefore, there is a clear difference between technical companies that transfer their profits through Ireland or transfer their profits to their parent company with royalties (minimum tax).

See also  The numbers tell us that the economy is good, but millions of Americans do not

Finally, telecom players also insist on the fact that they are investing heavily in the countries in which they operate. They expect to take into account investments in turnover or profit tax infrastructure, spectral costs, loans and other infrastructure. If all of this is limited by additional taxes, it may cause operators to invest less in their networks.

Over the years, there have been calls for higher tax on major tech multinationals in Europe, especially Facebook, Apple, Amazon, Microsoft and Google. In European countries their profit net profit is often very low, so they barely pay taxes or only in the country where they are headquartered. Digitax, also known as the Technical Tax or GAFA Tax, is the answer to this call, and the OECD and G20 are currently developing a general approach. The European telecom lobby warns that the tax could affect telecom players as well. Large multinational companies also offer digital services. In a press release, they jointly request that exemptions be granted. Both are not opposed to the idea of ​​a Digitex, but telecom companies are already paying a lot of taxes, including VAT and spectral licenses, as well as other local investments. Their fear is that OECD and G20 plans will certainly eliminate some taxes on digital services, but not specific telecom taxes. This will lead to double taxation for telecom operators. At the same time, two lobbying groups claim that most telecom companies operating in different countries are taxed on the profits of each of them. So there is a distinct difference with tech companies that spend their profits through Ireland or transfer their profits (in the form of low taxes) to their parent company in the form of royalties. . They expect to take into account investments in turnover or profit tax infrastructure, spectral costs, loans and other infrastructure. If all of this is limited by additional taxes, it may cause operators to invest less in their networks.

See also  Why is Singapore Airlines acquiring Boeing 737 aircraft?

Written By
More from Jake Pearson
This will be NASA’s Artemis 2024 Moon Lander
This full-size model shows what a dynamics human landing system looks like....
Read More
Leave a comment

Your email address will not be published. Required fields are marked *