Stop digital taxation by US duty to 5 European countries

Stop digital taxation by US duty to 5 European countries

In the wake of the OECD agreement on the global minimum tax for multinational corporations, five European countries, including the United States and Italy, have reached an agreement to end the dispute over digital taxation imposed on large corporations by various countries. Hi-Tech USA. Under the agreement, European countries abolished the digital services tax and Washington withdrew tariffs on certain categories of products, but in any case suspended US President Joe Biden. In the OECD on Global Taxation.

Stop the digital tax in 2023

The “Pax Economy” news was simultaneously provided by the USSR, the Office of the US Trade Representative, and the Ministries of Finance of Italy, France, Spain, the United Kingdom and Austria. More specifically, it is an agreement to “transition from existing taxes on digital services to a new multidisciplinary solution”. In practice, the digital taxes levied by European countries on technology giants will take effect as soon as they reach an agreement with the OECD – expected date 2023 – pledged to reimburse part of the tax burden.

The agreement, signed by 136 OECD countries out of 140 – is worth remembering – is based on two pillars: the first is that the multinational must actually tax at least a portion of the profits in the country where it operates (this is the figure) Big Tech USA can get a tax credit); Second, corporate tax profits should not be less than 15%. The global agreement, approved by Ireland this month, is now awaiting the final sealing of the world leader at the G20 on October 30-31 in Rome.

See also  That is why Switzerland does not defend itself

A “practical solution”

The settlement, announced by the Italian Ministry of Economy and Finance, represents a practical solution that will help focus on their collective efforts to successfully implement the historic agreement on the framework that includes the OECD / G20. A new multilateral tax system allows the termination of commercial transactions in response to digital services taxes. The agreement means that the British Ministry of Finance will “protect our tax on digital services until 2023” and that the revenue it guarantees will continue to finance essential public services. The U.S. Trade Representative Office welcomed the agreement, stating that the U.S. would continue to tax other business partners unilaterally on digital services.

Written By
More from Jake Pearson
Antarctic Judgment Day Glacier: If melted, it could destroy the entire planet
NASA estimates that the melting of this glacier, about the size of...
Read More
Leave a comment

Your email address will not be published.