Finance Minister Olaf Scholz addresses a press conference to present the results of the most recent estimate of the tax revenues in Berlin, Germany, May 9, 2019. REUTERS/Fabrizio Bensc
BRUSSELS (Reuters) – the German Finance Minister Olaf Scholz said Friday he expected the Organization for Economic Cooperation and Development (OECD) will agree a minimum tax for digital companies such as Amazon, Google and Facebook in mid-2020.
He also said that he expected that the progress in the third quarter of 2019, the introduction of a tax on financial transactions in at least nine EU countries.
“We discussed the taxation of large companies, especially in the digital economy,” Scholz said at a press conference after a meeting of EU finance ministers.
“We are on our way… to an international agreement on the level of the OECD, but also in the G7 and the G20,” Scholz said. “I expect that by the summer of next year we will reach an agreement in the OECD on a minimum tax… We should at the same time an agreement on the taxation of enterprises, so that it leads to a better taxation of the digital economy.”
France has proposed to assist in the financing of a future budget for the eurozone, of the taxes on digital companies, but some countries are wary of the move as it is not supported in the world, not to Europe at a disadvantage.
Scholz also said he expected progress at a different potential source of funding for the future euro-zone budget, the tax on financial transactions in the third quarter of this year.
“It seems as if the closer cooperation will make the results in the summer. We are working on the legal text. The basis of it is the French-German proposal. We are trying to convince the smaller states. I expect that the German revenue from the tax is approximately 1.2 billion euro. The effort would pay,” he said.
Reporting by Jan Strupczewski; editing by Philip Blenkinsop