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G7 countries devise ways to catch Amazon with a net tax.

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It was published



June 9, 2021

G7 member states bring Amazon, one of the world’s largest enterprises, to the list of 100 facing higher taxes in the countries in which it operates by targeting more profitable cloud computing units. He found a way to include it, officials close to the negotiations said.I

Reuters

Some European countries were concerned that Amazon could fall outside the proposed new rules because Amazon’s overall operating margin as a company is less than 10%. This is the threshold set as the basis for the companies on the list.

However, Amazon Web Services (AWS)’s business has a margin of more than 30%, so it can include the entire Amazon, an official told Reuters on condition of anonymity.

International consultations on the world’s smallest corporate tax agreed by seven wealthy country groups on June 5 are in parallel. The 100 most profitable and largest companies.

The G7 Finance Minister has agreed that the government will have the right to tax at least 20% of the profits earned in its own country if the profits earned by the multinational corporation exceed 10%.

A close-to-controversial source said, “We have decided that the entire enterprise has not reached its profitability limits, but most of them are above the G7 threshold and need to be included.”

“Now we’re just aiming for Amazon,” sources added.

Amazon did not immediately respond to the request for comment.

A British government source familiar with the negotiations said it was considering how to apply the rules to companies with different activities and areas of business without identifying Amazon.

OECD Tax officer Pascal Saint-Amans said he would be liable for Amazon’s AWS division, which is making more than € 20 billion ($ 24.4 billion) in revenue.

“In this way, the benefits associated with the cloud (business) are shared between countries,” he told France Info TV.

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G7 countries devise ways to catch Amazon with a net tax.

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