OECD Says US Still Committed to Global Digital Tax Talks

US Treasury Secretary Steven Mnuchin's suggestion last month that a break was needed sparked European concerns about Washington's commitment to a deal.

Share on Facebook Tweet Snapchat Share Reddit Comment
OECD Says US Still Committed to Global Digital Tax Talks

Photo Credit: Reuters

US Treasury Secretary Steven Mnuchin's suggestion last month that a break was needed sparked concerns

Highlights
  • Pillar one are the talks to update tax rules for the digital era
  • Delegates met online for the latest round of talks among 140 countries
  • The US delegation was present in the meeting

The United States remains committed to global talks on the taxation of big digital companies despite its call for a pause, the head of the Organisation for Economic Cooperation and Development (OECD) said on Wednesday.

US Treasury Secretary Steven Mnuchin's suggestion last month that a break was needed sparked European concerns about Washington's commitment to a deal on the first major rewriting of cross-border tax rules in a generation.

Comments by US Trade Representative Robert Lighthizer that Washington was "no longer involved in the negotiations" further fanned those doubts.

"To be clear, contrary to some earlier media reports, the US has not pulled out of the negotiations," OECD Angel Gurria said in a speech to delegates meeting online for the latest round of talks among nearly 140 countries.

"Indeed, the presence of the US delegation here today, notwithstanding the US request for a delay on pillar one, confirms their ongoing engagement in this important work."

Pillar one refers to the talks to update international tax rules for the digital era, where big companies like Facebook and Alphabet's Google can legally book profits in low-tax countries regardless of where their end-clients are.

Those talks are running in parallel to a second pillar of negotiations to agree a global minimum level of corporate taxation, which are more advanced and - unlike the digital talks - have a fair chance of being wrapped up this year.

"Pillar two will ensure that a minimum level of tax will be paid, no matter how much clever tax planning is undertaken by multinationals," Gurria said.

"This is why we need to reach an international agreement, whether partly in October and then later in 2021, or any other possible combination driven by the political agenda," he added.

© Thomson Reuters 2020


WWDC 2020 had a lot of exciting announcements from Apple, but which are the best iOS 14 features for India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

BSNL 4G Tender Cancelled by DoT, Fresh Tender May Exclude Chinese Companies: Sources
Amazon Prime Video Introduces Watch Party Feature For Group Streaming

Related Stories

 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2020. All rights reserved.
Listen to the latest songs, only on JioSaavn.com