Following the OECD agreement on a global minimum tax for multinational corporations, five European countries, including the United States and Italy, have agreed to end the controversy over digital taxes imposed on large corporations. Hi-Tech America. Under the agreement, European countries will begin to repeal taxes on digital services, and Washington will repay penalties for certain types of products. In the OECD on Global Taxation.
Stop digital taxes in 2023
News of the “box fund” was provided simultaneously 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 “from existing taxes on digital services to a new multilateral solution”. In practice, once the new regime agreed upon in the OECD comes into force, European countries will block digital taxes levied on technology companies – expected by 2023 – to ensure that part of the tax will be reimbursed.
The agreement signed by 136 of the 140 OECD countries – worth remembering – is based on two pillars: first, a portion of the profits must be taxed in the country where the multinational company actually operates (this figure) can be borrowed from the Big Tech USA tax); Second, corporate tax should not be less than 15% of profits. The global agreement, which was approved by Ireland this month, is now awaiting the final sealing of the world leader at the G20 on October 30-31 in Rome.
A “practical solution”
The compromise, announced in a note issued by the Italian Ministry of Economy and Finance, represents a practical solution that will help ensure that the countries concerned focus on their joint efforts to successfully implement the historic agreement on the framework that includes the OECD / G20. A new multilateral taxation and response to taxes on digital services allows approved business operations to cease. The British Ministry of Finance, for its part, has indicated that “the agreement is that our tax on digital services will be protected until 2023, and that the guaranteed income will continue to finance public services inevitably.” According to the US Trade Representative’s Office, the United States will continue to oppose the unilateral taxation of digital services by other business partners.
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