Negotiations on the taxation of digital giants are stalling at the OECD. The file is not progressing, which annoys Bruno Le Maire, who points the finger at several powers and no longer wants to act on a global scale.
We had almost forgotten about it! The famous tax on the digital giants promised to bring a certain balance, a certain global justice in the exchanges between the tax administrations of the whole world and the monster profits generated by the big digital companies of the globe. Several years after the start of discussions within the Organization for Economic Co-operation and Development (OECD), Bruno Le Maire now notes that ” things are stuck in his own words.
Bruno Le Maire no longer really believes in a positive outcome
During a press point organized this Monday morning on the sidelines of a ministerial meeting of the G20, the Minister of the Economy Bruno Le Maire made it clear to the audience that he had a lot on his heart when it comes to the expected tax on digital giants. The Bercy tenant, who has been carrying this case internationally since October 2019, says the chances of success are slim.
Bruno Le Maire criticizes, in particular the United States, India and Saudi Arabia, for blocking the discussions. ” We will plead for an unblocking of the situation “, he promises, without giving us false hopes. The international taxation of major global digital players should not see the light of day, and it is now time to move on.
The idea of a European taxation of digital giants resurfaces
” I remind you that we have always indicated that if the G20 and OECD countries were not able to agree on a practical implementation of digital taxation, we would plead for its European implementation. I think we are there “, explained the French minister.
This idea had already emerged in 2019, when Donald Trump was still in the White House. European Commission Vice-President Margrethe Vestager herself said that the European Union would be ready to act alone if no agreement was reached before the end of 2020. The declaration dates back to the month of September 2019. France, for its part, has already implemented its own “GAFAM tax”, which yields “ nearly 700 million euros per year to the state, recalled Bruno Le Maire.
Here, we were talking about Pillar 1, which consists of separating the consolidated profits of large companies whose turnover exceeds 20 billion euros, and which have a profitability of more than 10%.
But within the OECD, the countries of the world are also discussing a second point: that of a minimum tax of 15% on the profits of companies exceeding 750 million euros in annual turnover. This is Pillar 2. This file is progressing well and the rate could come into force ” in the coming months “, according to the minister. It will once again be without the United States, which will continue to apply its house system.
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