Joe Biden wants GAFA tax treaty within six months

Under the auspices of the Organization for Economic Cooperation and Development (OECD), talks have been going on for a number of years to find a global agreement that would allow the taxation of very large companies and especially the digital giants. They often take advantage of tax competition between countries and the lack of common rules to pay less taxes.

However, the negotiations tended to maintain the intransigence of the Trump administration, which refused to move forward on the matter. She feared that this could undermine the flagships of the American economy: Google, Amazon, Facebook and Apple. However, things have changed since Joe Biden was elected and a recent decision is meant to confirm that.

Joe Biden is personally committed to this issue

Our colleagues at La Tribune therefore point out that the services of the American Trade Representative have concluded that the taxes levied by the UK, Spain, Austria, Italy, Turkey and India discriminate against screw companies such as Netflix, Amazon and Google. They therefore ask for additional customs duties to be levied on goods from these countries.

Apart from the fact that the US sales representative, Katherine Tai, announced the suspension of these new tariffs for a period of six months. The idea is “to give more time [aux pays] to conclude the ongoing multilateral negotiations on international taxation at the OECD and in the G20 process ”.

President Biden has made a personal commitment to make this a reality. Even before her appointment, US Treasury Secretary Janet Yellen had pointed out that this tax would “allow companies to participate fairly, while maintaining the competitiveness of our companies and providing incentives (…) for offshore activities that we certainly do not want to reward “.

As a reminder, France has decided not to wait for the end of the negotiations on the introduction of its GAFA tax. At the end of last year, the first tax assessments were sent to the companies concerned.

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