Negotiations at the OECD for a tax on digital giants are at an impasse due to opposition from several countries, including the United States, Saudi Arabia and India, the French Minister of Economy Bruno Le Maire.
“Today things are blocked, in particular by the United States, Saudi Arabia and India. We will plead for an unblocking of the situation” but “the chances of success are slim”, declared the French minister during a press briefing, pleading for a European solution, before a ministerial meeting of the G20 this week in India.
“I remind you that we have always indicated that if the G20 and OECD countries were not able to agree on a practical implementation of digital taxation, we would plead for its European implementation. I think we are there, ”said Bruno Le Maire.
The Minister recalled that France had already implemented taxation of large digital companies at national level which “reports [à la France] nearly 700 million euros per year”.
The taxation of digital giants is one of the two pillars, called “pillar 1”, of the agreement reached at the OECD to establish the basis for fair competition at the global level in terms of corporate taxation.
The other pillar, called “pillar 2”, is the one establishing a minimum tax of 15% on company profits.
On this aspect “things have progressed well” and this minimum taxation might be put in place “in the coming months”, according to the French minister, even if the United States will continue to apply their own system called Gilti.
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