G20: Washington paves the way for taxation of digital giants
Janet Yellen in Washington, September 20, 2017. REUTERS - JOSHUA ROBERTS
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Gathered by videoconference on Friday, February 26, the G20 finance ministers worked on several issues such as the revival of global growth, the vaccination campaign and digital taxation.
On this subject, US Treasury Secretary Janet Yellen announced that Washington agreed to pave the way for a digital tax.
It is a real change of tone between the United States and European countries, including France, which for many months has been making this request.
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The United States on Friday lifted the main obstacle to the adoption of an international agreement on the taxation of digital giants.
Until now Donald Trump has always opposed it.
The countries which demanded to tax digital companies came up against a device called "refuge" or "safe harbor".
A clause imposed by the Trump administration at the end of 2019 during negotiations within the OECD, the Organization for Economic Co-operation and Development, which oversees the negotiations.
This mechanism protected these companies from a new financial tax.
As she had undertaken to do at the end of January, during a telephone interview with the French Minister of the Economy Bruno Le Maire, Janet Yellen has just confirmed that Washington is committed to opening discussions around two axes.
Namely: determine the distribution of taxes between countries of production and countries of consumption, and set the minimum tax threshold.
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To read also: Digital tax: Yellen and Le Maire “agree” to find a solution
This news was welcomed by France, which, tired of waiting, introduced in July 2019 a 3% tax on the turnover of digital giants before suspending it in 2020 to leave the door open for discussions.
Paris welcomes and considers that an agreement is within reach, perhaps as early as next summer.
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To read also: Presidency Biden: change of tone on the GAFA tax
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