Tech giants from Silicon Valley could soon be facing a global tax as the Organization for Economic Co-operation and Development (OECD) looks to reach an international agreement by summer 2021.
As the tech industry continues to grow, the OECD is looking at ways to address exactly how to tax this sector.
While the plan was to reach a deal back in 2020, it ultimately failed due to disagreements between the EU and the US during Donald Trump’s presidency.
With the new president in the White House, the OECD is optimistic that a worldwide agreement may be reached by this summer as President Joe Biden’s administration has indicated that it plans to be fully engaged in the negotiations.
In a conversation with CNBC’s Annette Weisbach last week, German Finance Minister Olaf Scholz indicated that it is “highly likely” that a deal on digital tax will be agreed upon before the summer deadline.
Pictured, German Finance Minister Olaf Scholz, explained in an interview to CNBC that there is a promising chance of a deal being reached by summer 2021.
(Photo: courtesy of Getty Images/M. Tantussi)
Some European countries, including France, Spain, and Italy have already implemented digital taxes of their own.
If negotiations with the OECD fall through again, the European Commission is expected to announce a digital tax throughout the 27 EU nations.
Scholz added that a “pragmatic approach” appeared to be resurfacing between the U.S. and Europe, and said that there was a “good chance for a new transatlantic partnership.”
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