Negotiations at the OECD for a taxation of digital giants are deadlocked due to opposition from several countries, lamented Monday, February 20, the French Minister of Economy, Bruno Le Maire, before a meeting G20 Ministerial this week in India. “Today things are blocked, especially by the United States, Saudi Arabia and India. We will plead for an unblocking of the situation” but “the chances of success are slim”, declared the minister during a press briefing, pleading for a European solution.
“I recall 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 advocate for its European implementation. I think we are there,” added Bruno Le Maire.
The Minister recalled that France had already implemented a taxation of large digital companies at the national level which “brings us nearly 700 million euros per year”.
The taxation of digital giants is one of the two pillars, called “pillar one”, of the agreement reached at the OECD to establish the basis for fair competition at the global level in terms of corporate taxation. The other pillar, called pillar 2, is the one establishing a minimum tax of 15% on corporate profits.
On this aspect “things have progressed well” and this minimum taxation could be put in place “in the coming months”, according to Bruno Le Maire, even if the United States will continue to apply their own system called Gilti.