US uses $ 2bn tariff threat against 6 countries over digital tax

The U.S. threatens to bear $ 2bn bills from the UK and five other countries as they argue over how tech companies will be taxed, a move risky to reign in transatlantic wars. sale unless the parties resolve the thorny talks about a broader international tax agreement.

The office of the U.S. trade representative SAYS imposed but immediately suspended for six months tariffs in Austria, India, Italy, Spain, Turkey and the UK because it wrapped up a series of reviews on how countries tax US tech giants. .

The announcement comes as rich countries have no end due to an update on the international tax regime. The Biden administration is proposing to give advanced economic powers to raise corporate taxes from U.S. tech companies and other major nationalities, while instituting a global minimum corporate tax.

Governments that introduce “digital service” taxes argue that tech companies do not pay small taxes on the profits they earn in many countries, in part because they record them in jurisdictions with low taxes. as in Ireland. Washington says the taxes are unreasonable because they do not equally affect U.S. companies.

Katherine Tai, the U.S. trade representative, said the six -month suspension of tariffs would allow more time for international talks about the tax to continue, but it would allow the U.S. to continue the “option to impose tariffs. . . if guaranteed in the future ”.

The Biden administration in April offered a fresh proposal to improve the international tax system in an attempt to dismantle it. liability in tax talks held by the OECD.

The U.S. proposal would apply the global income tax to most companies, including large U.S. technology groups, regardless of their physical presence in a given country. It is also sought after a minimum the world corporate tax rate of 21 percent, even though the U.S. recently said they would accept a 15 percent minimum.

The UK will be especially hard hit by the new tariffs if an agreement is not reached to abolish them, with British exports to the US worth $ 887m annually subject to 25 per cent taxes. The items highlighted include perfumes, make-up, clothing, jewelry and video games.

The U.S. has already suspended tariffs of 25 percent $ 1.3bn worth of French handbags and cosmetics, which initially threatened to hit champagne and cheeses with 100 per cent import charges.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *