the United States calls on the European Union to review its digital tax project

The United States has warned: this is a case that could “To derail completely” the ongoing international negotiations on global tax reform. US Treasury Secretary Janet Yellen on Sunday 11 July called on the European Union (EU) to reconsider its digital tax project, recalling that this type of tax introduced by several European countries is considered “Discriminatory against American companies”.

The agreement on the taxation of multinationals concluded on 1is July under the aegis of the OECD and approved on Saturday by the G20 “Calls on countries to agree to dismantle existing digital taxes that the United States considers discriminatory and to refrain from instituting similar measures in the future”, she said. “It is therefore up to the European Commission and the members of the European Union to decide on the way forward”, she added to the press on the sidelines of the G20 in Venice.

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The reform validated by the G20 is based on two pillars. One of the two is the creation of a global minimum tax of at least 15% for companies with more than 750 million euros in turnover. The other would put an end to unilateral taxes on digital services in exchange for a new mechanism allowing states to tax large profitable companies based on where they sell their products and services and no longer based on the location of the company. their head office and their intellectual property.

Europeans want to “reassure” the United States

Janet Yellen is due to travel to Brussels on Monday to attend the meeting of euro area finance ministers. The Europeans want to take advantage of this Eurogroup meeting to hold talks with the United States on the digital tax project that the EU wants to put in place, French Minister of the Economy Bruno said on Tuesday. The mayor.

This tax is, in fact, part of the new resources that the EU plans to finance its recovery plan of 750 billion euros. Washington, however, takes a dim view of this project, believing that it will discriminate against American giants like Amazon, Google or Facebook.

“We will have the opportunity to discuss this subject with [Janet Yellen], to reassure her, to take into account the concerns of the Americans and provide the necessary details ”, Bruno Le Maire said.

At the end of June, the United States asked several European countries to delay the digital tax project as part of a discreet diplomatic approach. “There is nothing directed against the Americans and I hope that we can allay American concerns on this”, assured Bruno Le Maire. Like Spain and Italy, France has introduced a digital tax, but has pledged to remove it once the agreement on the taxation of multinationals is implemented.

Read our column: “The creation of a global minimum tax on companies is a historic opportunity that should not be wasted”

The World with AFP