USA

Britain agrees to end taxation on US tech giants when global transactions come into force | World Economy

Britain is Google Facebook, Avoid the threat of retaliatory tariffs from the United States.

The agreement between the two countries will maintain the digital service tax until 2023. Newly agreed global tax system..

The United Kingdom, the United States, Austria, the United Kingdom, France, Italy and Spain all reached an agreement on Thursday to move from the digital services tax of Washington’s contested country to a new global tax transaction.

136 countries have agreed to pay taxes in countries where large multinational corporations operate, and have reached an agreement after promising a corporate tax rate of at least 15%.

UK digital service tax Introduced in April last year And we charge 2% of the total income of Digital Titan.

The Treasury said Thursday that it had persuaded Washington not to impose tariffs in retaliation for taxes. This will ultimately hurt many US companies the most.

But in return, they agreed to eliminate taxes on time, in support of a global solution. This was “always the intention of Britain,” the Treasury said.

“For nearly a decade, the UK has led the promotion of an international solution to the challenge of taxing technology multinationals. The Prime Minister has made securing a global agreement a top priority for the UK’s G7 presidency. “We are doing it,” said the agency. “The credit system provides a fair and sustainable solution.”

Discussions will continue in the coming months as world leaders understand how to implement taxes.

Prime Minister, Rishi Sunak, States as follows. “We are pleased to have agreed on a way to move from the digital services tax to the newly agreed global tax system, following the groundbreaking transaction completed earlier this month.

“This agreement means that the digital services tax will be protected during the transition to 2023, so that revenue can continue to fund critical public services.”

Britain agrees to end taxation on US tech giants when global transactions come into force | World Economy

Source link Britain agrees to end taxation on US tech giants when global transactions come into force | World Economy

Back to top button