Also, where and how, in particular, major Internet companies like Google, Amazon or Apple to pay taxes, is being discussed between the major economic powers are longer in the violent. In order to ensure a more equitable taxation of large Internet companies, developed by the organization for economic cooperation and development (OECD), a proposal for a solution.
in October, presented the draft provides for, among other things, that taxation is based only on the respective company’s headquarters. Instead, international companies should pay taxes, where customers or users of the services and the company profits.
OECD wants to solve a Problem with a global minimum tax rate
a Central idea of a minimum taxation of profits at a rate of 12.5 to 15 percent is. Specifically, this means: demand the home country, in which a group pays his taxes, a tax rate that is lower than this minimum limit, can be financial officers of other States to capture a share of the profits, and then tax payments.
On the main points of the Plan, the Finance Ministers of Top economic powers (G7) had agreed at a Meeting in Paris in the summer of coarse. Until January 2020, should now be at the level of the OECD, a global set of rules agreed upon. Later, the world is to be signed tax agreements from 140 countries.
Individual digital control is desired
time is short. “Should be achieved by 2020, no agreement, this would be the risk that the countries act unilaterally to increase significantly, with negative consequences for an already fragile world economy,” said OECD Secretary-General Angel Gurría. “We must not allow this to happen.” PDF The best employers in 2019
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Gurría refers to operations, such as in France. There, the government had introduced in the summer, own a digital tax for international Internet companies such as Google, Amazon, Facebook and Apple. He expresses it in the spirit of the United States. This reject digital taxes because they discriminate against a targeted American Internet companies, such as US Treasury Secretary Steven Mnuchin explained in a letter to Gurría. The US government is now considering punitive tariffs on French products such as champagne and cheese.
United States have “major concerns”, compared with the OECD Plan
in addition to France, also want to introduce countries, such as Austria and the UK own digital expensive. This approach would be contrary to common international law, which provides that profits, and not revenues, are taxed, so Mnuchin more. Reuters/Gustavo Garello US Treasury Secretary Steven Mnuchin threatens Turkey with new sanctions, should allow Ankara to the under house arrest of the US Pastor Brunson does not immediately leave the country.
The former Goldman Sachs Banker is notified, however, at the same time “great concern” to the international plans of the OECD. The U.S. rejected, in particular, efforts to collect future taxes on sales and not on profits, wrote Mnuchin in his letter to Gurría.
Germany initially wanted to make France a common thing
experts such as Clemens Fuest, President of the Munich-based Ifo Institute’s support, however, the OECD plans. Thus, tax avoidance could be limited, “which arises because companies can shift their profits,” writes Fuest in a paper he co-authored with two colleagues for the Board of advisors of the French Prime Minister, Edouard Philippe, the Conseil d’analyse Economique,. Content check: The gross-to-net calculator 2020, much net is left for them by the gross
On the political level, however, France may count to the same extent on the support of Germany. Although both countries had tried, together, to the last, the digital tax in the slimmed-down version for the whole of the EU to enforce. However, the project failed.
“Massive redistribution from the developed countries towards emerging countries,”
Although in this country, the voices multiply, the a digital demand tax, the German Finance Minister, Olaf Scholz (SPD) on the global approach. Here, him is likely to lead to the fear of retaliation by the United States, as France already dpa/Fabian summer/dpa buys threatens those Who share, to pay according to the draft of the Federal Finance Minister, Olaf Scholz, 0.2 percent of the financial value to the Treasury. were. But also on the global path could be cut in Germany, perhaps into his own flesh.
Because the OECD no longer has only the taxation of the classic digital corporations in mind, but all consumer-oriented companies: If companies are making about brand protection rights or patents of money should come from the profits of the market countries, such as the “world” emphasizes: “A massive redistribution of the industrial countries towards emerging countries would be the result.”
Germany, massive loss of tax revenue
is in fact German corporations to generate straight to the huge markets of China, Brazil or India, a large part of their sales and profits. In the worst case, the export-oriented Germany is threatening to lose in the Wake of the new rules, so a significant part of its tax revenue to these countries. German companies are in danger of additional tax burdens, unless double best not to be excluded from taxation effectively. (Display)
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Want to prevent Scholz this scenario, he has to make in the coming months at international level in a Top Job. Ironically, US President, Donald Trump might grow up to be an important ally. Is: Without the consent of the United States in this sensitive issue a decision.
taking the loss for Germany would be almost Zero shutdown
A possible compromise Fuest and his colleagues suggest in turn. Do you recommend certain modifications to the original OECD Checklist. So to the best of your companies should be accepted for a, even where there is only a “digital presence” of a company’s seat. In addition, the experts want to simplify the operations by always a part of the total profits of the marketing of countries associated with it and there will be taxed.
Germany would lose under this scheme, although tax revenue, grants Fuest. But if Scholz can be reached that the relocation is limited to the portion of profits that exceeds 12 percent rate of return on capital (so-called residual profits), would fail, the losses to just 0.1 percent of income tax revenue for Germany is small, so the calculation of the Ifo experts.
“Much too complex to negotiate a settlement up to the summer,”
What is the strategy in Germany at the end of tracks – it remains in any case an immense challenge for all Involved. According to long it might be until a solution is found. “The project is much too complex to negotiate a settlement as planned by the summer,” stresses Fuest. “In order to avoid a Failure, you should longer period and to 2020 with an intermediate result merely in order to keep the negotiating process.”
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