News

US suggests pause in talks on global digital tax plans

June 18, 2020 01:18 PM


Twitter Share Facebook Share WhatsApp Share

The Trump administration has called for a break in talks on how to tax digital giants internationally, the US Treasury announced Wednesday, citing the COVID-19 pandemic as a reason.

"The United States has suggested a pause in the OECD talks on international taxation while governments around the world focus on responding to the COVID-19 pandemic and safely reopening their economies," stated Treasury spokeswoman Monica Crowley.

Treasury Secretary Steven Mnuchin sent a letter to his French, British, Spanish and Italian counterparts in which he informed them of this break, a source told AFP, confirming a report in the Financial Times.  

In January, 137 countries had agreed to reach a deal on the taxation of multinationals by the end of 2020 under the aegis of the OECD. 

Taxation must take into account the actual activity carried out in each country, to prevent large groups such as Google, Amazon or Facebook from paying their taxes where the tax on profits is lightest. 

US Trade Representative Robert Lighthizer did not rule out a multilateral agreement when he appeared before the House of Representatives earlier Wednesday. 

"I think there's clearly room for a negotiated settlement," he said. "We need an international regime that not only focuses on certain sides and certain industries, but where we generally agree how we're going to tax people internationally." 

France has decided to impose a tax on large digital companies of up to three percent of their turnover as of January 1, 2019, pending the adoption of international taxation. 



Most Read

  1. Public Holiday announced in Lahore tomorrow Public Holiday announced in Lahore tomorrow
  2. Nazish Jahangir to hit any marriage proposal from Babar Azam out of the ground Nazish Jahangir to hit any marriage proposal from Babar Azam out of the ground
  3. Madiha Rizvi ties the knot again Madiha Rizvi ties the knot again
  4. Iranian First Lady visits Numl Iranian First Lady visits Numl
  5. ‘Rs150m corruption scandal’ involving Marriyum Aurangzeb surfaces ‘Rs150m corruption scandal’ involving Marriyum Aurangzeb surfaces
  6. Zara Noor Abbas inspired by Rani Mukerji Zara Noor Abbas inspired by Rani Mukerji

Opinion

  1. Islamabad becoming the hub of international diplomacy
    Islamabad becoming the hub of international diplomacy

    By Salim Bokhari

  2. Insights into the Pakistan Stock Exchange's Recent Record High Triumph
    Insights into the Pakistan Stock Exchange's Recent Record High Triumph

    By Zulfiqar Ali Mir

  3. IMEC to sabotage CPEC
    IMEC to sabotage CPEC

    By Dr Asif Channer

  4. 1947 TO FORM 47
    1947 TO FORM 47

    By Dr Asif Channer

  5. Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....
    Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....

    By Ali Ramay

  6. Global race: China will reduce its unnecessary expenses
    Global race: China will reduce its unnecessary expenses

    By Ali Ramay