PARIS (Reuters) – Outdated cross-border tax rules are set to be rewritten after 137 states sought this week to avoid a new trade war over the global multiplication of taxes on digital services.
FILE PHOTO: The logo of Amazon Prime Delivery is seen on the trailer of a truck outside the company logistics center in Lauwin-Planque, northern France, December 30, 2019. REUTERS/Pascal Rossignol
Amazon (AMZN.O), Facebook (FB.O) and Google (GOOGL.O) have strained existing rules to breaking point because such tech giants are able to book profits in low-tax countries like Ireland, no matter where their customers are located.
Government officials agreed at a meeting in Paris to negotiate new rules for where tax should be paid and what share of profit should be taxed when big digital and other consumer-facing businesses do not have a physical presence in the market, the Organisation for Economic Cooperation said.
A growing number of countries are preparing national digital taxes in the absence…
Source Reuters Tech News