Status: 07/16/2021 8:35 AM
The world’s 100 largest and most profitable corporations are to be taxed more in the future. However, according to the US government, Amazon may not be affected by the new regulation.
US online retailer Amazon may not have to pay the planned global minimum tax. This is evident from the statements of the US government. “It depends on whether the company reaches profitability, and I’m not sure about that,” U.S. Treasury Secretary Janet Yellen said in an interview with CNBC, when asked whether the agreement would reach 130. Will reallocate taxation rights to more states. Amazon.
Finance ministers of 20 largest trading and industrialized countries (G20) recently agreed That companies with an annual turnover of at least 750 million euros will have to pay a minimum tax rate of 15 percent on their profits in the future. was already under the umbrella of the OECD 130 states voted in favor of the plans. Amazon also falls in this category.
Also, a more equitable distribution of taxation is planned so that in future companies pay taxes not only in their home country, but where they do good business.
On the other hand, one of the so-called pillars of the deal is about the question of which country will receive more tax payments from the 100 largest and most profitable corporations in the future – whether, for example, emerging countries can claim the share. of tax revenue in which a corporation provides services. For example, regulation could replace national taxes on digital services.
The prerequisite is a ten percent return on sales
This pillar would affect corporations or their business sectors that achieve a minimum turnover of 20 billion euros and a profit of ten percent of income.
At least at Amazon, the requirements were not met last year. Amazon sold $386 billion. Profit was a good $21 billion, the return on sales was a good five percent.
However, in the first quarter of the current year, the group came in slightly closer to the 10 per cent limit. Profited $8.1 billion with sales of $108 billion, This corresponds to a return of 7.5 percent.
The background to Yellen’s statement is clearly that a group like Amazon can be taxed as entire groups or as individual divisions. Amazon Web Services, a subsidiary of cloud computing, is especially extremely profitable.
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