China and US home to nearly 60% of companies likely to pay global tax

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The tax plan aims to correct authorities' inability to tax big multinationals at a rate commensurable to their profits. FMTNews

Alibaba Group Holding is among the names that clear revenue and profit thresholds.

Of these, 11 are mainland Chinese companies, including tech giants Tencent Holdings and Alibaba Group Holding. Facebook, Philip Morris International and Microsoft are among the 35 American names. Partly owing to the impact of the coronavirus pandemic, Nikkei found a smaller number of companies meet the announced thresholds.

These 81 companies have a total of €410 billion in profit beyond the 10% margin, based on their most recent results. Under the agreement, 20% to 30% of this would be subject to tax. A review seven years after the agreement enters into force could reduce the revenue threshold to €10 billion for companies that meet the criteria.

France, among other countries, has rolled out its own digital services tax, which has pushed tech giants to call for a uniform framework.

 

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