The United States is an obstacle to the digital tax deal

U.S. Secretary of State for Treasury Janet Yellen has told G20 finance ministers that her country is ready to drop the “safe port” measure, which would allow digital giants to voluntarily join a new tax regime.

A U.S. Treasury official told the AFP on Friday (February 26) that the United States had lifted a major barrier to the adoption of an international agreement on the taxation of digital giants. U.S. Treasury Secretary Janet Yellen told G20 finance ministers that Washington would drop a controversial part of the plan, which was tabled by the Trump administration in late 2019, known as a rule. RepGive “ (Safe port), he explained.

The Safe Port It is up to the digital giants to choose between voluntarily accepting the new tax regime or continuing with the current system. France immediately welcomed the US change and considered a deal “In hand”, And is possible in the summer.

It is necessary now “Finish without delay” The talks, French Finance Minister Bruno Le Myre stressed in a statement.

Discussions on the project are taking place within the framework of the Organization for Economic Co-operation and Development (OECD). The so-called Washington dropped Asylum There is “A big step on the way to an agreement by the end of the summer”, Also assessed German Finance Minister Olaf Scholes as part of the G20 finance meeting.

Janet Yellen declared Washington “Make a firm commitment to the two pillars of the project” According to the head of the treasury, international tax reform.

Quiet tensions

Negotiations involve the distribution of tax rights (column 1) between producing countries and consumer countries on the one hand, and the determination of where to pay taxes broadly, and on the other hand, the threshold for all countries on the minimum tax (pillar 2).
The draft agreement, which will not expire at the end of 2020 due to the US siege, is of concern to all sectors. But for digital multinationals this is so severe that they pay particularly low taxes on the markets, but they are important, but their physical presence is declining. The taxation of Google, Facebook and other US companies is very important because these companies were the big winners when the countries plunged into recession in 2020 from the Govt-19 epidemic.

U.S. infiltration will ease tensions between the United States and Europe. The Trump administration ‘s disruption to the project actually caused great tension between Paris and Washington.

Also read: What Europe wants for the Kafa line

France advanced its troops by enforcing the “Kafa” tax on Google, Amazon, Facebook and Apple. Also, after observing a fight in January 2020, he decided to tax it from January 6 to 2020.

Shortly before his departure, the Trump administration announced that the use of additional tariffs on iconic French products such as champagne had finally been pushed back in retaliation for the Kafa tax, which came into effect on January 6, 2021. In early January, before it was confirmed, Janet Yellen softened the US position on the controversial issue and said she was ready to resume discussions.

France has announced that if the discussions at the OECD fail, the EU will campaign to set its own tax. In short, the time to accept the plan is over.

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Harrison Matthews

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