Global digital tax deal may not be ready until 2024

The French Minister of Economy and Finance, Bruno Le Maire, has indicated that the global tax agreement on multinationals, which replaced the “Gaffam Tax”, may not be ready within the time frame initially negotiated.

This was known as the “Gaffam Tax”, it became a “global tax on multinationals”. This agreement on digital taxation, a French initiative, but after reassuring many countries of the world, should not be ready until late 2023 or early 2024. Reuters reports that Finance Minister Bruno Le Maire has indicated significant delays in implementing the measure.

“Pillar I, with respect to digital taxation, we will spare no effort to convince the international community and OECD members to reach a consensus in the coming months.They said on Tuesday, 24 May after a meeting with their European counterparts in Brussels. It could be the end of 2023, it could be the beginning of 2024, the main point being a total overhaul of international taxation.”,

Related 138 countries

In October 2021, France, Austria, Italy, Spain and the United Kingdom, which had adopted national “gafham taxes”, entered into an agreement with the United States, thus signing the end of the unilateral regime, soon to be a global tax. will be replaced by , In total, about 140 countries have agreed to rewrite the rules for international taxation. Unfortunately, the 2023 implementation deadline may not be met.

The deal, which executives expected to sign in the middle of this year, aims to reallocate tax rights from large digital conglomerates such as Apple, Meta and Google to countries where end customers are located. Like the French “Gaffam tax”, this global tax should apply to multinationals that generate more than €750 million in combined financial revenue. Specifically, it sets the tax rate at 15% of the profits.

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The agreement also marked the official end of the trade retaliation implemented in the United States under the Trump administration.

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About the Author: Forrest Morton

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