In what situation will Joe Biden take the digital tax?

In late November, France sent its first tax notice to digital giants. As a reminder, this new tax concern companies traded at least 25 million euros in France and 750 million euros in the world. At the same time, other European countries, including Italy and the United Kingdom, About to collect a tax in the coming months. The first major economic challenge here is waiting for Joe Biden from 20 January 2021.

Digital tax comes first

In response to France’s charge on digital giants, the Trump administration threatened to tax some French products. US government sites: French cosmetics and handbags. In total, there are 1.3 billion additional customs duties that can be imposed on France. Washington specifies that such tariffs Can be applied to various products in 10 other countries, Including the United Kingdom, Italy, India and Spain.

In the same category

Microprocessors: China’s expensive forced independence

There is a problem behind this whole story Find the right formula to tax the digital economy. Tech companies can of course sell their products “across borders” and thus avoid taxes in many countries. This parade Prevents countries where these services are charged to tax. A topic on which 137 member countries of the OECD tried to find an agreement in the early autumn. Unfortunately, the Kovid-19 crisis has overcome the priorities of current countries and the absence of the United States. Doubts were sown during this meeting.

Will Joe Biden Take the Same Line as Trump?

This could not stop Bruno Le Myre Go it alone and send the first tax notice. The French Minister of Economy hopes to change all this. Today, the rule goes like this: Related companies must produce more than 750 million euros in worldwide turnover and 25 million euros in France and operate a marketplace, as Amazon, Uber, do. Or Airbnb or perceived as an “advertising agency”, this is the case of Google, Facebook or Crito. These last Have to pay the equivalent of 3% of their French income In taxes.

READ  Asian stock markets have continued to decline globally

In the United States, Democrats have always been so far Endorsed the Trump administration’s view on this issue. Nevertheless, the new administration refused to take a stand or comment. Remembered as Wall Street Journal, This hot topic will definitely One of the first challenges for US President-Elect Joe Biden. Apparently, Amazon and Facebook have stated that they disagree with the digital tax and support the OECD’s discussions.

However, discussions do drag on and it does not please everyone. Some countries including India and Austria also have Started imposing its own tax on digital revenue Great company. Spain also announced that its digital service tax will come into force on 16 January with quarterly payments.

You May Also Like

About the Author: Forrest Morton

Organizer. Zombie aficionado. Wannabe reader. Passionate writer. Twitter lover. Music scholar. Web expert.

Leave a Reply

Your email address will not be published. Required fields are marked *