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Done and ready for Facebook to pay more tax, as it welcomes the rules review

MUNICH (Reuters) – Facebook (FB.(O) the Chief Executive, Mark Zuckerberg also accepts the fact that global tax reform, it means that it is possible to have to pay more taxes in the various countries, excerpts from a speech he is due to be delivered in Germany on the Saturday of the show.

FILE PHOTO: Facebook Chairman and CEO Mark Zuckerberg testifies at a House Financial Services Committee hearing in Washington, d.c., USA, October 23, 2019 at the latest. REUTERS/Erin Scott/File Photo

Cross-border tax rules have been set up in order to be re-written after the 137 states have sought in recent months to prevent the occurrence of a new trade war in the global multiplication of the tax on digital services, led by a number of countries are preparing to go out on their own.

“I don’t understand that there is frustration at the tech companies have been subject to tax in Europe. We also need a reform of the tax system, and I am pleased that the OECD is looking at this,” Zuckerberg, is expected to tell the Munich Security Conference.

“We would like the OECD process, in order to succeed, so that we can have a stable and reliable system for the future. And we have to accept that it may mean that we have to pay more taxes, and to pay at various places, under a new framework,” he added.

Amazon’s (AMZN.D), Facebook, and Google (GOOGL.D) have strained the existing rules, because they are in a position to book profits in low-tax countries such as Ireland, regardless of where their customers are.

Officials agreed last month to negotiate new rules on where tax should be paid, and what portion of the income is to be taxed, the Organisation for Economic co-operation and Development (OECD) has said.

THE EUROPEAN VISIT

A growing number of countries in the preparation of the national digital tax in the absence of a comprehensive redrafting of the rules, in spite of Washington’s threat of a violent trade, tariffs, and because he sees such charges as biased against U. S tech groups.

Zuckerberg’s speech, the fragments did not give any further details about the tax rates. Facebook says that it pays all the tax it should and that it is, on average, more than 20% over the past five years.

In the united Kingdom, Facebook, paid only 28.5 million pounds ($37.2 million) in corporation tax in 2018, in spite of the generation of a record 1.65 billion pounds in Uk sales, media reports said.

Tax officials have only a couple of months for an early July deadline, they are set up to deal with the complex technical parameters. They are aiming to reach a full deal by the end of 2020.

During his visit to Europe, it can be Done, is to comply with the EU’s digital and it industry leaders on Monday.

That’s two days in a European Competition, and the Digital Commissioner, Margrethe Vestager, Commissioner for the Internal Market Thierry Breton, is set to announce the creation of a single European regulator for the market, which are aimed at combating the dominance of U.S. tech giants such as Facebook, Google, and Amazon.

Additional reporting by Douglas Busvine in Berlin; Writing by Paul Carrel in Munich, and Keith Weir in London; Editing by Alexander Smith

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