U.S. corporations and government officials are still assessing the implications of a “unified approach” to taxing the digital economy proposed by the Organization for Economic Cooperation and Development.
The OECD is trying to get more than 130 countries to agree to a plan next year that is focused on allocating more corporate profits to countries where multinational corporations have a large market presence. That means some countries are going to see more tax revenue under the plan than others.
Because most of the tech companies that would be impacted are based in the U.S., the Trump administration has said the tax unfairly targets American companies like Apple, Amazon, Facebook and Google. President Trump has also publicly called out countries like France that have put their own digital tax plans in place before the OECD plan was fully developed. The French digital tax is a 3 percent tax on yearly revenues of tech companies that make at least 750 million euros annually and provide services to users in France. In response, the White House has threatened to impose duties on $2.4 billion in French imports.
“Look, I’m not in love with those companies – Facebook and Google and all of them, Twitter. Though I guess I do well with Twitter,” Trump said at a recent NATO summit in London. “But they’re our companies. They’re American companies. I want to tax those companies. They’re not going to be taxed by France.”