GAFA taxes: Washington drops its retaliation

These tariffs were never actually implemented, particularly on French leather goods and cosmetics, with Washington suspending them on several occasions.

The US Treasury Department said in a statement that the abandonment of these reprisals follows the recent agreement reached in the Organization for Economic Co-operation and Development (OECD) to reform global taxation of multinational corporations.

This reform includes, on the one hand, taxing digital giants, and on the other hand, a global minimum tax to avoid tax optimization.

G20 announced last week that these Two new pillars to be operational by the end of 2023, even in early 2024.

By then, American champions of digital services like Google, Apple, Facebook or Amazon, better known by the acronym GAFA, will pay a tax from Austria, Spain, France, Italy and the United Kingdom.

The Treasury explained that revenue from these national taxes will be credited to these companies when global taxes are in effect.

He added that Washington, in return, would not impose tariffs on a large number of goods from these countries.

This deal means that our digital services are tax protectedThe British Finance Minister, Rishi Sunak, welcomed in a statement, stressing that this revenue will go Continue to fund essential public services. The UK has introduced a GAFA tax since April 2020.

This is good news for cosmetic and leather goods companies that have been explicitly targetedFor his part, the French Minister of Foreign Trade, Franck Riester, responded.

In July 2019, France adopted a national tax of 3% on the turnover generated by France’s digital giants, which exceeds 750 million euros in global activity.

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Our purpose is clear, and our determination is sound: We must continue to work to once and for all settle all transatlantic trade disputes, beginning with additional US tariffs on European steel and aluminum.The French minister continued.

Discriminatory taxes, according to Washington

The Biden administration had already, in June, suspended for six months these tariffs after a year of investigation by the Services of the United States Trade Representative (USTR).

The Office of the US Trade Representative (USTR) came to the conclusion that the taxes that these countries impose on the GAFA were good discriminatory against the large American groups.

Then it was recommended to impose Additional tariffs on certain goods from these countries.

But US Trade Ambassador Catherine Taye decided to suspend it immediately for up to 180 daysIt is time to conclude the multilateral negotiations within the framework of the Organization for Economic Co-operation and Development and the Group of Twenty.

The G20 confirmed last week that national taxes will remain in place until international taxes are in effect.

Last week, French Economy Minister Bruno Le Maire, on a trip to Washington, insisted that 2023 should remaincommon goal to implement the international convention on taxation.

He also called on the United States to end it Permanently to trade rivalries, citing the thorny dispute over tariffs on European steel and aluminum.

That dispute, which has plagued transatlantic relations, began when the Donald Trump administration in June 2018 imposed punitive tariffs of 25% on European steel and 10% on European aluminum in the name of safety.

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The parties must reach a consensus by early November, otherwise European retaliation may take place on December 1.

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