Joe Biden unblocks the Gafam tax

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TheBiden administration has simply unblocked two main negotiations throughout the OECD: the tax on digital giants and the minimal company tax. Two information that Trump was blocking. Janet Yellen, the brand new Secretary of State for the Treasury, has placed on the desk of the G7 / G20 some very fascinating proposals which be a part of the French and German proposals.

“A tax revolution is inside attain”, rejoiced Bruno Le Maire throughout a phone press briefing on Thursday afternoon, whereas stressing that his providers proceed to check the American proposals. First step ahead: Washington is proposing to create a world tax on the digital giants by distributing the earnings from the tax on the turnover realized “nation by nation”. The tax can be based mostly on internet earnings and never on turnover, in contrast to the Franco-German proposal. Which means the Individuals are taking on the country-by-country method whereas refining the system. “It is a fairer system, however now we have to guarantee that no large escapes taxes. Our providers are finding out the difficulty, ”mentioned the French Minister of the Financial system.

Conclude earlier than Angela Merkel leaves

The Biden administration additionally rallies to the European concept (supported particularly by the Germans) of a minimal company tax and proposes a price of 21%, the place Europe provided solely 12.5%. This excessive price leaves the French minister skeptical, who’s ready to see if the American Congress will help the formidable intention of the American president. In Europe, the Irish will most likely not be the final to refute such a excessive price …

READ ALSOHow Google desires to bend Brussels

The negotiations should happen throughout the confines of the OECD and be concluded pretty rapidly subsequent summer season. The timing is crucial, as a result of, after the summer season, Germany will enter a section of electoral marketing campaign not conducive to such necessary discussions. And after Germany (legislative on September 26), it’s France which in flip, within the first half of 2022, will start the presidential marketing campaign. In brief, the window of alternative is slender for a file as technical and as necessary because the institution of a brand new system of worldwide taxation tailored to globalization.

The subsequent decisive weeks on the OECD

The system of taxation of Gafam, proposed by the Individuals, is easier than that proposed by the OECD which needed – a tough process – to tell apart, within the earnings of corporations, the share of digital actions from these ensuing from bodily exchanges.

The American proposals have, on the entire, been the topic of a optimistic evaluation by European leaders. Bruno Le Maire met together with his German counterpart, Olaf Scholz, together with his Italian counterpart, Daniele Franco, in addition to with the Commissioner Paolo Gentiloni, in command of taxation. Discussions within the coming weeks throughout the OECD can be decisive. “It’s now that we should conclude”, underlined Bruno Le Maire, after 4 years of an extended and tough battle, inside Europe first, then towards a hostile Trump administration and utilizing arguments delaying.

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TheBiden administration has simply unblocked two main negotiations throughout the OECD: the tax on digital giants and the minimal company tax. Two information that Trump was blocking. Janet Yellen, the brand new Secretary of State for the Treasury, has placed on the desk of the G7 / G20 some very fascinating proposals which be a part of the French and German proposals.

“A tax revolution is inside attain”, rejoiced Bruno Le Maire throughout a phone press briefing on Thursday afternoon, whereas stressing that his providers proceed to check the American proposals. First step ahead: Washington is proposing to create a world tax on the digital giants by distributing the earnings from the tax on the turnover realized “nation by nation”. The tax can be based mostly on internet earnings and never on turnover, in contrast to the Franco-German proposal. Which means the Individuals are taking on the country-by-country method whereas refining the system. “It is a fairer system, however now we have to guarantee that no large escapes taxes. Our providers are finding out the difficulty, ”mentioned the French Minister of the Financial system.

Conclude earlier than Angela Merkel leaves

The Biden administration additionally rallies to the European concept (supported particularly by the Germans) of a minimal company tax and proposes a price of 21%, the place Europe provided solely 12.5%. This excessive price leaves the French minister skeptical, who’s ready to see if the American Congress will help the formidable intention of the American president. In Europe, the Irish will most likely not be the final to refute such a excessive price …

READ ALSOHow Google desires to bend Brussels

The negotiations should happen throughout the confines of the OECD and be concluded pretty rapidly subsequent summer season. The timing is crucial, as a result of, after the summer season, Germany will enter a section of electoral marketing campaign not conducive to such necessary discussions. And after Germany (legislative on September 26), it’s France which in flip, within the first half of 2022, will start the presidential marketing campaign. In brief, the window of alternative is slender for a file as technical and as necessary because the institution of a brand new system of worldwide taxation tailored to globalization.

The subsequent decisive weeks on the OECD

The system of taxation of Gafam, proposed by the Individuals, is easier than that proposed by the OECD which needed – a tough process – to tell apart, within the earnings of corporations, the share of digital actions from these ensuing from bodily exchanges.

The American proposals have, on the entire, been the topic of a optimistic evaluation by European leaders. Bruno Le Maire met together with his German counterpart, Olaf Scholz, together with his Italian counterpart, Daniele Franco, in addition to with the Commissioner Paolo Gentiloni, in command of taxation. Discussions within the coming weeks throughout the OECD can be decisive. “It’s now that we should conclude”, underlined Bruno Le Maire, after 4 years of an extended and tough battle, inside Europe first, then towards a hostile Trump administration and utilizing arguments delaying.


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