Europe, the G20, the taxation of the digital giants ‘ top priority this year

BRUSSELS (Reuters) – Europe wants to become the world’s financial leaders to be their top priority this year is to reach a deal with the global rules governing the taxation of digital giants such as Google (GOOGL.(O), Amazon (AMZN.(O) and Facebook (FB.(O)”, a document showed.

FILE (PHOTO: File photo a Google logo is seen at an event in Paris, France-May 16, 2019 at the latest. REUTERS/Charles Platiau/File Photo

The finance ministers and central bank governors from the world’s 20 biggest economies (G20) meet on Sept. 22-23, in Riyadh, to discuss, among other issues, the work of the Organisation for Economic co-operation and Development (OECD) on the tax rules and regulations.

“We want to give the highest priority to the development of a range of comprehensive solutions for the approach to the taxation of the digital economy, and in the remaining Base Erosion and Profit-Shifting issues,” said the document, which is the attitude of all the European members of the G20, plus the Uk, the EU, in the last month.

“We are looking for an ambitious, fair, effective, non-discriminatory and workable global solutions, will be doubling our efforts in the direction of a consensus-based solution for the delivery of this global target by the year 2020.”

Europe has long insisted that in order to be very profitable large-tech companies that are doing business on the Internet, and will have to pay taxes where they sell their services, rather than the body has deliberately chosen, under the so-called “aggressive” tax optimization”.

The EU-politicians in search of funds in order to prevent climate change and to reduce wealth disparities between the 27-nation bloc, are angry that a company like Google, with an annual income of more than $160 billion, you can enjoy an effective income tax rate is in the single digits and the non-U.S. income, about one-quarter of the average rate of tax in the overseas markets as well.

Frustrated by the lack of global progress, due to the opposition of the United States of america, where the tech giant is based, in some countries, such as France, introduced their own digital tax of the previous year. Such moves triggered a threat of retaliation by the market rates of the Services.

In italy, the Uk and Spain, have already implemented their own digital tax planning has to be done.

Bowing to increasing pressure, the Facebook Chief Executive, Mark Zuckerberg, will be entered in a speech on Saturday to the global tax reform could mean that the company may have to pay more in taxes in the different countries, Politically, have been reported.

The OECD will reach an agreement on the technical details of how many and where-to-high concentration of digital companies by the beginning of July, and an agreement is in place by the end of 2020, in order to prevent a further escalation of trade tensions around the issue.

The EU has said that as long as there is no deal on the level of the G-20, the 27 member states, it would have come with the digital tax system of their own.

Reporting by Jan Strupczewski; Editing by Mark Heinrich

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