G20 finance officials eye solution to digital tax row this year

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Finance officials from the Group of 20 major economies on Saturday vowed to resolve major differences over taxing big tech companies and reach a broad, consensus-based solution on international taxation this year.

The Trump administration this month ratcheted up pressure on France over its 3% digital services tax, saying it would impose additional duties of 25% on French imports valued $1.3 billion but would hold off on implementing the move while talks continued in the Organisation for Economic Co-operation and Development.

G20 finance ministers and central bankers on Saturday acknowledged that the coronavirus pandemic had slowed work toward an international plan, but said they expected concrete proposals to emerge before their next meeting in October. “We remain committed to ... overcome remaining differences and reaffirm our commitment to reach a global and consensus-based solution this year,” they said after a virtual meeting.

After the meeting, German Finance Minister Olaf Scholz said, “Fair taxation of international companies and large digital groups is more urgent than ever.”“The crisis proved that these digital giants were the big beneficiaries of the crisis. They must pay their fair portion of tax,” he said. Reporting by Andrea Shalal in Washington, Christian Kraemer in Berlin, and Leigh Thomas in Paris; editing by Diane Craft and Cynthia Osterman

 

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