The end of the presidency of Donald Trump will open a new chapter in international cooperation, hope in Berlin. This will help, in particular, agree on the general rules for the taxation of large companies, says German Finance Minister Olaf Scholz.
Speaking at the conference organized by the Reuters Agency, Scholz stated that he plans to reach an agreement with the new administration of Joe Bayden on the income tax of transnational companies. The draft principles of their taxation in October published the Organization of Economic Cooperation and Development (OECD).
The OECD project was actively supported, in particular, the Government of Germany, France, Italy, Spain and Great Britain. They insist that companies such as Apple, Facebook and Google receive huge profits on the European market, but pay very little taxes in national budgets. Mainly, technological companies list profits into low-level jurisdictions, where their daughters are registered, which are transferred to the rights to the services they provide.
The United States initially participated in the initiative to develop international rules, but in June last year he suspended negotiations with European countries, stating that they "went to a dead end." US Finance Minister Stephen Mnuchin also threatened to introduce import duties on goods from countries that introduced their own digital tax (this, in particular, made France).
The principles formulated by the OECD revolutionize the taxation of transnational corporations and, it is estimated to provide countries in the world to receive an additional $ 100 billion to their budgets. OECD is trying to reach a consensus with more than 135 countries on the principles of reform, due to which, according to it, the growth of tax revenues on The profit of companies can be up to 4%.
The OECD approach lies in the fact that transnational companies, including high-profile large American technological companies and European manufacturers of luxury items, should pay a tax on their profits in those countries where they are doing business, and not where their daughters are registered. The amount of payment will depend on the scale of the company's business in a specific country. OECD also proposes to introduce a minimal income tax on the global level. This will avoid unnecessary competition among countries in the struggle for attracting large corporations by reducing this tax.
The opposition project OECD by the Trump administration is one of the main reasons why countries cannot agree on a single approach. The readiness for international cooperation in this issue will be one of the first tests for the Biden administration.
Last year, France, without waiting for other countries, introduced its own digital tax. In November, its tax service began to demand from such American companies as Facebook and Amazon, pay millions of euros on it in 2020. Washington accused Paris in dishonest competition, because tax applies primarily to major technological companies from the United States.
At first, the United States stated that in response, a 25% duty will be introduced to the import of French goods, including cosmetics and luxury items. But last week, the office of the US representative at the trade negotiations stated that it will postpone the introduction of duties against France to the development of general responses against those countries in respect of which he is investigating on the fact of applying digital tax.
Minister Scholz opposes the introduction of a new tax by individual countries and supports the OECD plan. A unified international approach will not only allow you to replenish national budgets and reduce tax evasion, but also will help business, eliminating legal uncertainty, he said last year.
Translated Mikhail Overchenko